MOSCOW/LONDON (Sputnik) — Fitch Ratings said Tuesday it had lowered Ukraine's long-term and short-term foreign currency IDRs from 'C' to 'RD' (restricted default).
"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," the agency said in a statement.
The long-term local currency IDR was affirmed at 'CCC' by Fitch Ratings.
Fitch's next Ukrainian review will follow the implementation of the Ukrainian Finance Ministry's exchange offer of direct and government-guaranteed eurobonds, expected to be completed by October 27.
A year-long military conflict in eastern Ukraine, which began when Kiev launched an operation against independence supporters, has resulted in an economic crisis, leaving the state on the verge of a default, while its national currency, the hryvnia, has dropped in value dramatically since 2014.
Ukraine has become increasingly reliant on outside help, with its major lenders including the International Monetary Fund, the World Bank and several countries.