S&P downgrades Ukraine's rating to CC

LONDON

Credit rating agency S&P has lowered Ukraine’s credit rating to CC from CCC, according to a statement from the agency.

"Under our criteria, we expect we would classify an exchange offer or similar restructuring of Ukraine’s foreign currency debt as tantamount to default," the rating company said in the statement late on Friday.

S&P said the country's external debt was a source of concern and outlook of the new credit rating was negative, suggesting further cuts may be on the way.

“The negative outlook reflects the deteriorating macroeconomic environment and growing pressure on the financial sector, as well as our view that default on Ukraine’s foreign currency debt is virtually inevitable," S&P said.

The agency pointed out that Ukraine is forecast to have an external debt stock of $50 billion and nearly $10 billion, including corporate and treasury bonds, has to be paid within the year.