U.S. markets open in 8 hours 29 minutes
  • S&P Futures

    3,975.00
    +9.25 (+0.23%)
     
  • Dow Futures

    33,852.00
    +49.00 (+0.14%)
     
  • Nasdaq Futures

    11,685.25
    +39.75 (+0.34%)
     
  • Russell 2000 Futures

    1,822.50
    +2.80 (+0.15%)
     
  • Crude Oil

    72.11
    +0.65 (+0.91%)
     
  • Gold

    1,808.30
    +6.80 (+0.38%)
     
  • Silver

    23.45
    +0.20 (+0.88%)
     
  • EUR/USD

    1.0579
    +0.0019 (+0.18%)
     
  • 10-Yr Bond

    3.4910
    0.0000 (0.00%)
     
  • Vix

    22.29
    -0.39 (-1.72%)
     
  • GBP/USD

    1.2259
    +0.0021 (+0.17%)
     
  • USD/JPY

    136.1370
    -0.4930 (-0.36%)
     
  • BTC-USD

    17,223.43
    +392.01 (+2.33%)
     
  • CMC Crypto 200

    406.10
    +11.41 (+2.89%)
     
  • FTSE 100

    7,472.17
    -17.02 (-0.23%)
     
  • Nikkei 225

    27,937.17
    +362.74 (+1.32%)
     

Ukraine in default according to Fitch and S&P

FILE PHOTO: The Fitch Ratings logo is seen at their offices at Canary Wharf financial district in London

(Reuters) -Global rating agencies S&P and Fitch on Friday lowered Ukraine's foreign currency ratings to selective default and restricted default as they consider the country's debt restructuring as distressed.

Earlier this week, Ukraine's overseas creditors backed the country's request for a two-year freeze on payments on almost $20 billion in international bonds. The move will save Ukraine some $6 billion on payments according to Prime Minister Denys Shmyhal.

S&P lowered Ukraine's foreign currency rating to "SD/SD" from "CC/C."

"Given the announced terms and conditions of the restructuring, and in line with our criteria, we view the transaction as distressed and tantamount to default," S&P said.

Fitch cut the country's long-term foreign currency rating to "RD" from "C," as it deems the deferral of debt payments as a completion of a distressed debt-exchange.

S&P also said the macroeconomic and fiscal stress stemming from Russia's invasion of Ukraine may weaken the Ukrainian government's ability to stay current on its local currency debt and lowered the Eastern European country's local currency rating to "CCC-plus/C" from "B-minus/B".

Battered by Russia's invasion, which started on Feb. 24, Ukraine faces a 35%-45% economic contraction in 2022 and a monthly fiscal shortfall of $5 billion.

(Reporting by Bhanvi Satija and Aishwarya Nair in Bengaluru; Editing by Maju Samuel and Leslie Adler)