25 Mar 2015
Ukraine downgraded to just one notch above default: Moody's
FXStreet (Mumbai) - Moody's ratings agency downgraded Ukraine's sovereign debt rating on Tuesday to Ca from Caa3, just one notch above default. The outlook for the country remains negative.
The agency stated in its report, "The key driver of the downgrade is the likelihood of external private creditors incurring substantial losses as a result of the government's plan to restructure the majority of its outstanding Eurobonds"
"Although negotiations over the specific details of the restructuring are only now getting underway, Moody's believes that the likelihood of a distressed exchange, and hence a default on government debt taking place, is virtually 100%,"
"These solvency challenges are the key reason for maintaining a negative outlook on the government's downgraded ratings."
The agency stated in its report, "The key driver of the downgrade is the likelihood of external private creditors incurring substantial losses as a result of the government's plan to restructure the majority of its outstanding Eurobonds"
"Although negotiations over the specific details of the restructuring are only now getting underway, Moody's believes that the likelihood of a distressed exchange, and hence a default on government debt taking place, is virtually 100%,"
"These solvency challenges are the key reason for maintaining a negative outlook on the government's downgraded ratings."