It is not only Russia that has gone into selective default. S&P and Fitch,

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Financial rating agencies S&P and Fitch on Friday lowered Ukraine’s ratings to selective default and restricted default, considering that the restructuring of the country’s debt is in difficulty, reports Reuters.

Earlier this week, Ukraine’s foreign creditors backed the country’s request for a two-year freeze on payments on nearly $20 billion worth of international bonds.

The measure will save Ukraine approximately $6 billion in payments, according to Prime Minister Denis Smihal.

S&P lowered Ukraine’s rating from “CC/C” to “SD/SD”.

“Given the announced terms and conditions of the restructuring and in accordance with our criteria, we consider the transaction to be in difficulty and equivalent to a default, S&P said.

Fitch downgraded the country’s long-term rating from “C” to “RD” as it considers the deferment of debt payments as a completion of a distressed debt swap.

S&P also said macroeconomic and fiscal stress resulting from Russia’s invasion of Ukraine could weaken the Ukrainian government’s ability to service local currency debt and cut its local currency debt rating from “B-minus/B” to “CCC-plus/C”,

Hit by the Russian invasion, which began on February 24, Ukraine is facing an economic contraction of 35%-45% in 2022 and a monthly budget deficit of 5 billion dollars.