October 6, 2015 / 3:53 PM / in 4 years

Fitch Downgrades Ukraine's Foreign-Currency IDRs to 'Restricted Default'

(The following statement was released by the rating agency) NEW YORK/LONDON, October 06 (Fitch) Fitch Ratings has taken the following rating actions on Ukraine: --Long-term foreign currency IDR downgraded to 'RD' (Restricted Default) from 'C'; --Long-term local currency IDR affirmed at 'CCC'; --Short-term foreign currency IDR downgraded to 'RD' from 'C'; --Senior unsecured foreign-currency issue ratings on all outstanding external issues affirmed at 'C'; --Senior unsecured local-currency issue ratings affirmed at 'CCC'; --Senior unsecured foreign-currency issue ratings on all outstanding domestic issues affirmed at 'CCC'; --Country Ceiling affirmed at 'CCC'. KEY RATING DRIVERS The 10-day grace period on Ukraine's USD500m eurobond maturing on 23 September 2015 has elapsed without payment being made. Fitch therefore judges Ukraine to be in default on its sovereign eurobond obligations. On 24 September, Ukraine launched the exchange offer for approximately USD18bn in direct and government-guaranteed eurobonds. Fitch considers that this represents a Distressed Debt Exchange (DDE) under its criteria that results in material losses to bondholders and is being conducted to avoid default. RATING SENSITIVITIES Ukraine's ratings will be upgraded shortly after Fitch determines that the exchange has been successful. The new rating will be consistent with Ukraine's prospective credit profile and debt structure. The Ministry of Finance has said that it plans to conclude the exchange by 27 October. KEY ASSUMPTIONS Fitch assumes that the debt exchange offer announced on 24 September will be implemented. Contact: Primary Analyst Charles Seville Senior Director +1-212-908-0277 Fitch Ratings Inc. 33 Whitehall Street New York, NY 10004 Secondary Analyst Carmen Altenkirch Director +44 20 3530 1511 Committee Chairperson James McCormack Managing Director +44 20 3530 1286 Media Relations: Peter Fitzpatrick, London, Tel: +44 20 3530 1103, Email: peter.fitzpatrick@fitchratings.com. Additional information is available on www.fitchratings.com Applicable Criteria Country Ceilings (pub. 20 Aug 2015) here Distressed Debt Exchange (pub. 12 Jun 2015) here Sovereign Rating Criteria (pub. 12 Aug 2014) here Additional Disclosures Dodd-Frank Rating Information Disclosure Form here _id=991865 Solicitation Status here Endorsement Policy here ail=31 ALL FITCH CREDIT RATINGS ARE SUBJECT TO CERTAIN LIMITATIONS AND DISCLAIMERS. PLEASE READ THESE LIMITATIONS AND DISCLAIMERS BY FOLLOWING THIS LINK: here. IN ADDITION, RATING DEFINITIONS AND THE TERMS OF USE OF SUCH RATINGS ARE AVAILABLE ON THE AGENCY'S PUBLIC WEBSITE 'WWW.FITCHRATINGS.COM'. PUBLISHED RATINGS, CRITERIA AND METHODOLOGIES ARE AVAILABLE FROM THIS SITE AT ALL TIMES. FITCH'S CODE OF CONDUCT, CONFIDENTIALITY, CONFLICTS OF INTEREST, AFFILIATE FIREWALL, COMPLIANCE AND OTHER RELEVANT POLICIES AND PROCEDURES ARE ALSO AVAILABLE FROM THE 'CODE OF CONDUCT' SECTION OF THIS SITE. FITCH MAY HAVE PROVIDED ANOTHER PERMISSIBLE SERVICE TO THE RATED ENTITY OR ITS RELATED THIRD PARTIES. DETAILS OF THIS SERVICE FOR RATINGS FOR WHICH THE LEAD ANALYST IS BASED IN AN EU-REGISTERED ENTITY CAN BE FOUND ON THE ENTITY SUMMARY PAGE FOR THIS ISSUER ON THE FITCH WEBSITE.

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