On August 2, 2024, S&P Global Ratings lowered its long-term and short-term foreign currency (FC) sovereign credit ratings to 'SD/SD' from 'CC/C' as the government did not make the coupon payment on its 2026 Eurobond August 1, 2024, when the payment was due.
"We also understand the government has decided to suspend payments on the affected bonds before the restructuring. To that end, the government did not make the coupon payment on its 2026 Eurobond August 1, 2024, when the payment was due, and we do not expect the payment within the bond's contractual grace period of 10 business days," it said.
S&P therefore lowered its issue ratings on the sovereign's 2026 Eurobond to 'D' (default) from 'CC', and also affirmed its 'CC' rating on Ukraine's remaining senior unsecured foreign currency debt issues.
At the same time, the agency affirmed its 'CCC+/C' local-currency (LC) and 'uaBB' national scale ratings on the sovereign.
"We understand Ukraine's hryvnia-denominated government debt is not in scope for debt restructuring. The outlook on the LC rating is stable," it said.
