(Reuters) – S&P Global said on Friday it believes it is “virtually certain” that Ukraine will default on its external commercial obligations and further cut the country’s long-term foreign currency (FC) credit rating.
The agency downgraded FC’s rating to ‘CC’ from ‘CCC’ and said it expects Ukraine to begin formal debt restructuring talks with its private creditors in the short term and complete the process by the middle of this year.
Russia’s invasion of Ukraine in February 2022 marked the beginning of the deadliest war on European soil in more than 70 years.
“Given the significant damage to physical and human capital, Ukraine’s medium-term economic prospects are subject to a high degree of uncertainty,” the S&P report said.
The agency stated that its outlook on the rating of FC Ukraine is negative.