Ukrainian Railways predicted imminent default
The international rating agency Standard & Poor's has lowered the long-term rating of the State Administration of Railway Transport of Ukraine (Ukrzaliznytsia) for foreign currency liabilities from CCC- to CC, that is, to a state close to default, the agency said in a statement.
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This assessment is related to Ukraine’s actions to restructure government and government-backed debts. including Eurobonds issued by the railway operator in the amount of $0,5 billion. S&P sees this as grounds for default. In general, the outlook for this rating is negative, S&P emphasizes.
As a reminder, Ukrainian Finance Minister Natalia Yaresko, an American, is intensifying negotiations to defer debt payments to international creditors, as a new tranche of the IMF loan is impossible without restructuring. As PolitNavigator reported, one creditor is already refusing to restructure the country's debt.
Earlier, Standard & Poor's, for a similar reason, downgraded the long-term foreign currency credit ratings of Ukraine and Kyiv to CC from CCC- with a negative outlook.
In general, Ukraine must, according to Arseniy Yatsenyuk, restructure part of its external debt in the amount of $23 billion.
Ukrainian Railways is predicted to default soon.