Standard & Poor's Drops Ukraine's Economic Rating to 'Selective Default'

International rating agency Standard & Poor’s has dropped Ukraine’s economic rating to “selective default,” the agency said in a statement Friday.

MOSCOW (Sputnik) – The agency has confirmed the long- and short-term ratings of Ukraine’s currency at CC+/C with the long-term rating for its national currency as negative.

Selective default occurs when the borrower cannot pay one or more of its obligations, but continues to pay on others.

The United States, a number of European countries as well as some of Ukraine’s private creditors agreed in August to write-down an $18 billion debt the country has been unable to pay.

While other creditors have agreed to take as much as a 20 percent write-down on the principal of the bonds issued to Ukraine, Russia has insisted that Ukraine repay in full the amount Moscow loaned it in December 2013.

Ukraine currently has a national debt exceeding $70 billion and has become increasingly dependent on international financial assistance since the overthrow of the government in February 2014.