Ukraine is "downgraded"

According to Agence France -Presse, Washington reported on August 12, the S & P Global Rating Company regulated Ukraine's credit rating again on the 12th local time, saying that the country's debt restructuring agreement was "equal to breach of contract."

It is reported that S & P reduced the rating of Ukraine from "CC/C" to "SD", that is, "selective breach of contract". It pointed out that most European bond holders in Ukraine agreed to postpone the debt repayment time by 24 months.

S & P said: "Given the announced reorganization terms and conditions, according to our standards, we believe that this transaction is frustrated and equivalent to breach of contract."

According to reports, the day before, Ukrainian Prime Minister Jenis Shmegal said that most creditors agreed to the country's suspension of US $ 20 billion in debt until 2024. The Ministry of Finance of Ukraine said in a press release that creditors holding about 75%of Ukraine's debt agreed to suspend debt repayment.

The report pointed out that if a country cannot fulfill its creditors -may be the financial obligations of international organizations or private bond holders such as the State Government and the International Monetary Fund, it will be deemed to be breach of contract.

It is reported that if the S & P believes that "the debtor has a choice of default on specific issues or a type of debt, but it will continue on other issues ... on time ... fulfilling debt repayment obligations", it will give a "selective breach of contract" rating.

According to reports, some Western countries including the United Kingdom, France, Germany, Japan, and the United States have agreed last month to allow Ukraine to delay the payment of debt interest and call on other countries to join this effort.

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