Standard & Poor’s has downgraded Ukraine’s credit rating, both short-term and long-term, from ‘CC’ to selective default ‘SD’ level. The country was previously rated as ’highly prone to risks; default has not yet occurred but more than likely’, reads a statement on the agency’s website.

The agency has affirmed its foreign currency sovereign credit ratings on Ukraine at ‘CCC+/C’, with outlook being negative.

The cut in ithe country's credit rating comes after Ukraine started restructuring debts and suspended payments on a number of liabilities that will be restructured.

The default means Ukraine will not repay its debt to all commercial bondholders in full.