Fitch lowers Ukraine's rating from CC to C

The international rating agency, Fitch Ratings, has lowered Ukraine's long-term issuer default rating (IDR) in foreign currency from CC to C.

This follows from a statement by the agency, the Ukrainian News agency reports.

"Ukraine's downgrade reflects Fitch's view that the agreement in principle reached on July 22 between the government and some Eurobond holders on the terms of restructuring after the adoption of a law allowing the government to suspend payments on its external debt marks the beginning of a default-like process," the statement says.

The agreement with bondholders and the debt moratorium law is in line with the government's efforts to implement a four-year, USD 15.6 billion IMF extended financing program that involves debt restructuring with significant debt reduction to create fiscal space and restore debt sustainability.

As the Ukrainian News agency earlier reported, on July 22, it became known that Ukraine had reached an agreement in principle with the Committee of Eurobond Owners of Ukraine.

This is an important stage in the process of debt restructuring, which will make it possible to save USD 11.4 billion on its maintenance over the next three years and USD 22.75 billion by 2033.