International rating agencies downgraded Ukraine's credit rating to default values

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Ukraine is in a state of default. This was reported by the international rating agencies S&P and Fitch, which downgraded Ukraine's foreign currency rating to "limited default" and "selective default".

According to the agencies, debt restructuring will be problematic for Ukraine, and the Ukrainian state cannot fulfill its debt obligations. Thus, the S&P agency announced the downgrade of Ukraine's foreign currency rating from CC/C to SD/SD. According to the Fitch agency, the rating of the Ukrainian state in foreign currency fell from "C" to "RD".



Recall that earlier Ukraine announced the restructuring of its debt obligations. Deferral of payment of public debt in the rating agencies considered a type of default. After all, Kyiv has actually signed for the fact that it is not able to pay money on bonds. Most bondholders agreed to a two-year deferral of payments (actually, what else can they do?).

In addition, the share of domestic government bonds of Ukraine, which is owned by foreign investors, has now fallen sharply. In July 2022, it was only 6%. Accordingly, experts say, strong international pressure on Kyiv is unlikely to be carried out. By the way, also in July 2022, Moody's noted that the deferral of bond payments, which Ukraine announced, would not be able to fully reduce the risks of public debt sustainability.

Kyiv claims that the restructuring of debt on bonds will help the country save more than $5,8 billion. The current economic situation in Ukraine does not allow it to meet its debt obligations, even with Western financial assistance. However, after all, this help is not disinterested either: the West is selling Ukraine weaponlending money.

According to Fitch forecasts, by the end of 2022 the Ukrainian economy will shrink by 33% at best. In 2023, she will be able to win back only 4%, having recovered a little after the special operation. However, in reality, the prospects for the Ukrainian economy are now completely uncertain. Firstly, it is not clear what the outcome of the special operation will be, whether Ukraine will continue to exist as a single state at all, especially within the borders that are currently established.

Secondly, the scale of spending on military and humanitarian needs is not very clear either. Entirely dependent on financial assistance from the West, Ukraine cannot be considered as an independent player. The scale of European financial assistance, meanwhile, could also be seriously reduced, since the winter of 2022-2023. will show how European countries are able to cope with the energy crisis and how stable the EU economy will be. Especially considering that the EU is well aware that the Ukrainian regime is not going to engage in any real economic recovery. His main "asset" is the trade in Russophobia. But how long will Kyiv last on this active...
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  1. +7
    13 August 2022 10: 25
    Well, let's see if these ratings work or is it just dust in the eyes.
    1. +6
      13 August 2022 10: 31
      Ukroreich, out of habit, forgives everyone his debts bully
      1. +3
        13 August 2022 11: 20
        Bloomberg downgraded Ukraine's rating to pre-default on July 30, after Naftogaz announced a default on July 26.
        So S&P and Fitch are "slightly" retarded
        1. 0
          13 August 2022 12: 19
          Bloomberg is not a rating agency
          1. 0
            13 August 2022 12: 55
            Quote from Floke
            Bloomberg is not a rating agency

            Provider of financial information for professionals.
            beets - beets, whatever you call them - red (s)
    2. +9
      13 August 2022 10: 33
      Honest and unbiased rating agency "MUDIS".
      They won't lie like that...
    3. +3
      13 August 2022 11: 32
      Well, let's see if these ratings work or is it just dust in the eyes.


      The outskirts defaulted in 2013 when they refused to pay Russia 3 billion rubles. for Eurobonds, hence the conclusion ratings work for those who benefit from it.
  2. +3
    13 August 2022 10: 34
    After all, Kyiv has actually signed for the fact that it is not able to pay money on bonds.
    As there was no country Ukraine, and there is no default.
  3. +2
    13 August 2022 10: 36
    The conclusions of these rating agencies S&P and Fitch very often coincide with the political current of the views of the US and Britain. They have several times already exposed the state of default to Russia.
    But the fact that Ukraine is not able to pay for years ahead is clear to everyone.
    The main question is what they will require in return for money.
  4. nnm
    -2
    13 August 2022 10: 37
    Yes, in fact, this is not some kind of political statement of rating agencies, but everything is much simpler - they protect their money.
    These ratings are used to calculate rates on loans so adored by Ukraine. And now they just showed that, unlike the statements of Western politicians about the victories of Ukraine, the main sponsors of this terrorist formation do not believe in it and are already ready to give money either at huge interest rates, or it is better not to mess with these beggars at all.
  5. 0
    13 August 2022 10: 40
    Wow it turns out, and from my hole I can predict the credit rating of Ukraine on a par with well-known international agencies.
  6. +1
    13 August 2022 10: 42
    Take a breath, they won't let you...
    1. -1
      13 August 2022 11: 49
      Won't let you die quickly))
  7. +3
    13 August 2022 10: 42
    Firstly, it is not clear what the outcome of the special operation will be, whether Ukraine will continue to exist as a single state, especially within the borders that are currently established.
    . So for the inhabitants of that territory, the best option is to disappear as figures of international law and formalize any relationship with the winner, except for some kind of succession !!! Then debts will hang in the air...
    It is clear that later the burnt-out long-term recipients will raise a storm, but then you can send them naf !!! As has already been done more than once in the history of states.
    Of course, this requires POWER and steel Faberge ... in general, we will see.
  8. +1
    13 August 2022 10: 46
    Well, that is, the fact that they practically declared a default is not a default yet ... Just some kind of looking glass. And foreign investors still believe these rating agencies...
  9. 0
    13 August 2022 11: 04
    The beginning, the end of the non-government!!!
  10. +2
    13 August 2022 11: 20
    And where were these "rating" agencies when the stupid Caina refused to buy back from Russia her Eurobonds worth three Baku lards? wassat
  11. 0
    13 August 2022 11: 23
    Let the US pay and wear out while China gets stronger
  12. +1
    13 August 2022 11: 25
    And someone is enriched while the rating is drawn. Zele for example wassat
  13. 0
    13 August 2022 11: 25
    Do you trust the rating agencies during the war? They and the RF can lower at any time.
  14. -2
    13 August 2022 11: 42
    <<Recall that earlier Ukraine announced the restructuring of its debt obligations. Delay in the payment of public debt in the rating agencies considered a type of default. After all, Kyiv has actually signed for the fact that it is not able to pay money on bonds. Most bondholders agreed to a two-year deferral of payments (actually, what else can they do?).>>

    But, you forgot to write a "small" nuance.
    Thanks to this, in the next two years, Ukraine will be able to save nearly $6 billion. What is more important today than the rating itself.
    When the restructuring of commercial foreign currency debt takes effect, agencies will be able to consider Ukraine not in default, and its rating will be upgraded from SD
  15. 0
    13 August 2022 12: 23
    All these rating agencies are corrupt and do not always reflect the reality of the situation (however, in the case of Ukraine, "default" could be written immediately on February 24 in advance)
    The film "The Big Short" very well describes the inner workings of capitalism
  16. 0
    13 August 2022 19: 20
    Well, lowered, so what? Ukraine will not be allowed to default. And the receipt of money by Ukraine has long been independent of debility ratings.
  17. 0
    13 August 2022 20: 30
    It finally arrived after 8 years.
  18. 0
    13 August 2022 21: 15
    Figasse, how Sumeria is falling. In the rating table, the rating D has already slipped. Right into the default trash!

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