The Ministry of Finance of Ukraine considers the increase in S&P credit ratings by country the first step to facilitate the provision of international financing. The change in ratings due to the completion of the negotiations on the restructuring of debt.
KYIV, 20 Oct. The Finance Ministry of Ukraine welcomes the increase of Ukraine’s rating by international rating Agency Standard & poor’s, hoping that it will help Kyiv to return to international capital markets and facilitate the provision of funds.
S&P raised the long-term and short-term credit ratings of Ukraine in foreign currency at once to six and seven steps to “B-/” c selective default “SD/D”. At the same time, the Agency raised long-term and short-term rating in national currency to “b-/b” “CCC+/C”. The outlooks on the ratings is stable. According to the Agency, the upgrades were due to the completion of Ukraine’s negotiations with commercial creditors to restructure its debt. Meanwhile, S&P after the reduction by 6.8%, real GDP of Ukraine in 2014, it predicts a decline of about 15% by the end of 2015.
“This is the first step for the return of Ukraine on international capital markets and facilitate the provision of financing by international financial institutions and export credit agencies. It would also facilitate the provision of international financing for Ukrainian companies and banks”, — stated in the message of the Ministry of Finance of Ukraine.
13 the owners of Eurobonds of Ukraine last October 14, the Assembly approved by a majority (75% votes) of their restructuring, it will affect the total securities to $ 15 billion, of which $ 3 billion will be written off and the repayment of another $ 8.5 billion will be deferred from the next four years at a later date.
The Cabinet of Ministers of Ukraine on September 22 issued an order to start the process of restructuring part of its debt, including its perimeter and Russia redeemed Eurobonds for $ 3 billion.
However, Russia, which is the only holder of Eurobonds of Ukraine at $ 3 billion, at meetings on 14 October, did not participate. Ukraine has set an October 29 re-Assembly. However, the President’s press Secretary Dmitry Peskov has confirmed a position of Russia: restructuring she agrees, and the non-payment of Ukraine in the term, in December, $ 3 billion in favor of Russia will mean its default.