A ‘selective default’ has begun in Ukraine, – says S&P Global

Another rating agency has downgraded Ukraine’s credit rating to near-default.

S&P Global announced that Ukraine has entered a “selective default” due to missed payments to creditors.

On August 1, Ukraine was supposed to make payments on its eurobonds, but this did not happen, leading the agency to downgrade Ukraine’s long-term and short-term foreign currency ratings to SD/SD.

“We also downgraded the 2026 eurobond rating from CC to D (default),” the agency’s statement said.

Recently, Ukraine reached an agreement with bondholders to restructure its external debt. The proposal includes a nominal haircut of 37% on Ukraine’s outstanding international bonds, which will allow Kyiv to save $11.4 billion on payments over the next three years.

As a result, Fitch downgraded Ukraine’s credit rating to “C,” indicating that a default has already occurred or is inevitable.