17:49 GMT 06.10.2015(updated 18:05 GMT 06.10.2015) Get short URL 64 Fitch's next Ukrainian review will follow the implementation of the Ukrainian Finance Ministry's exchange offer of direct and government-guaranteed eurobonds, expected to be completed by October 27. MOSCOW/LONDON (Sputnik) — Fitch Ratings said Tuesday it had lowered Ukraine's long-term and short-term foreign currency IDRs from 'C' to 'RD' (restricted default). "The 10-day grace period on Ukraine's USD500m eurobond maturing on 23 September 2015 has elapsed without payment being made. Fitch therefore judges Ukraine to be in default on its sovereign eurobond obligations," the agency said in a statement. The long-term local currency IDR was affirmed at 'CCC' by Fitch Ratings. © Sputnik / Grigoriy Vasilenko The Country Ceiling also retained its previous assessment as 'CCC,' according to the agency’s statement. Fitch's next Ukrainian review will follow the implementation of the Ukrainian Finance Ministry's exchange offer of direct and government-guaranteed eurobonds, expected to be completed by October 27. A year-long military conflict in eastern Ukraine, which began when Kiev launched an operation against independence supporters, has resulted in an economic crisis, leaving the state on the verge of a default, while its national currency, the hryvnia, has dropped in value dramatically since 2014. Ukraine has become increasingly reliant on outside help, with its major lenders including the International Monetary Fund, the World Bank and several countries.
Fitch ratings agency has downgraded Ukraine's long-term and short-term foreign currency issuer default ratings, as we noted on Monday. A year-long military conflict in eastern Ukraine has led to economic turmoil, and the country's GDP was expected to fall 12% by the end of this year, more than the 7.5% predicted in April, the World Bank reported this week. ﻿T﻿he country is now heavily ﻿dependent on the International Monetary Fund and other international donors.