(Reuters) – Ratings agency S&P Global affirmed Ukraine’s foreign currency credit rating at “selective” default on Friday after bondholders approved the war torn country’s plan to restructure more than $20 billion of debt.
The debt restructuring provides Ukraine with a crucial reprieve, helping to ensure budget stability as the prolonged conflict with Russia drives up defense spending.
S&P considers the restructuring “distressed,” indicating that Ukraine’s finances will remain under pressure.
The ratings agency also affirmed its ‘CCC+/C’ rating and stable outlook for Ukraine’s local currency.
(Reporting by Raechel Thankam Job; Editing by Arun Koyyur and Tasim Zahid)
