Fitch lowered Ukraine’s foreign-currency debt grade to D from C.

According to Fitch, Kiev's long-term rating has been downgraded after the Ukrainian capital’s failure to repay its outstanding debt of $250 million on Eurobonds, as well as expected delay in repayment of a $300 million debt on Eurobonds.

It was reported earlier that on October 8, Kiev City Council approved an interim moratorium on repayment of the city’s foreign currency debts which is due to take effect on November 6. On October 9, Fitch responded to the move by downgrading the city’s rating to ‘limited default’.

In August, the Ukrainian Government succeeded in reaching a deal with its debt holders on writing off 20% (or USD 3,8 billion) of Ukraine’s state debt. Any deals on debt restructuring cause a country’s credit ratings to be lowered by credit rating agencies.