S&P declares Ukraine in 'selective default'

[unhappycamper]

http://www.dw.com/en/sp-declares-ukraine-in-selective-default/a-18742725

The credit rating agency Standard & Poor's has lowered its ratings for Ukraine's short-term debts in foreign currencies to "selective default." The agency cited Ukraine's launch of "distressed debt restructuring."

S&P declares Ukraine in 'selective default'
25.09.2015

The New York-based credit rating agency Standard & Poor's (S&P) said on Friday that Ukraine's foreign currency rating was lowered after the debt-stricken country invited "commercial bondholders to participate in a series of debt buyback auctions."

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"In Ukraine's case, the deviation was prompted by the launch of what we consider to be a distressed debt restructuring," S&P said in its report.

The move means the American credit rating agency does not believe Ukraine will be able to fully pay back its debt to commercial bondholders.

The country's bondholders are expected to attend a meeting on October 14 to vote on whether they will accept the offer, which would witness a 20 percent "haircut" from the money they are owed. S&P said only foreign currency ratings were affected, as Ukrainian sovereign debt in its own currency, the hryvnia, is excluded from the October talks.

[abelenkpe]

1. K&R