Paris: Ratings firm Standard & Poor`s cut Ukraine`s credit rating by one notch Friday due to its intentions to restructure its foreign debt.
"We would classify... restructuring of Ukraine`s foreign currency debt as tantamount to default," the agency said. "We are lowering our long-term foreign currency ratings on Ukraine to CC from CCC-" with the outlook negative.
The Ukrainian government has begun negotiations with creditors for $15 billion (14 billion euros) in debt relief, part of a $40 billion, four-year financial rescue envisioned by the International Monetary Fund.
The Fund has approved a $17.5 billion loan to Ukraine as part of the package in exchange for the government`s successful implementation of economic, budget and monetary reforms.
But, the IMF has warned, the breakdown of a fragile ceasefire with pro-Russia rebels in the country`s east, the failure to reschedule its debt with private lenders, or domestic political issues could all undermine the plan.
