The affirmation of Ukraine’s long-term issuer rating in foreign currency at SD represents settlement of the Eurobond debt exchange. The downgrade of rated Eurobond securities to single-D considers average rates of recovery.

The selective default on Ukraine’s long-term debt in foreign currency reflects non-payment of a February-2026 Eurobond due to debt-servicing moratorium. The restructuring of Eurobond securities is expected to be completed in the coming weeks.

Ukraine’s CC foreign-currency issuer ratings reflect expectation of debt treatment by 2024, for meeting the external financing gap. The revision of the Outlook on domestic debt to Stable reflects reduced likelihood of restructuring of domestic debt.

Completion of foreign debt restructuring informs sovereign credit rating upgrade.

Foreign debt restructuring drives the sovereign credit rating downgrade to selective default (SD).

Request for foreign debt restructuring drives the sovereign credit rating downgrade.

Severe recession, potential of debt restructuring, and weakening of external sector underscore Negative Outlook. Significant international funding and political support, and pre-crisis improvement of economic framework, underpin ratings.

Russia’s military invasion of Ukraine and associated severe credit implications drive the rating downgrade. Uncertainties surrounding evolution of the conflict and ongoing weakening of credit fundamentals drive rating review.

Improvements of economic policy framework, reserve build-up, reduction in public debt and multilateral support abet ratings*. Elevated geopolitical risk, high external financing needs, restricted market access and record of default reflect challenges.