Ukraine close to default: International rating agency Moody’s has downgraded Ukraine to its pre-default level ‘Ca’, in the belief that the Ukrainian economy is on the verge of default and unlikely to be able to get out of the crisis without debt relief. Moody’s says that the main reason for downgrade was “the likelihood that private external creditors could incur significant losses as a result of the government’s plans (Ukraine) to restructure most of its Eurobonds.” It also noted that “the level of public and external debt of Ukraine will remain very high, despite the reform plans and debt restructuring.”A Ca rating means that the debt obligations of the issuer are highly speculative and are likely to be in default or close to default.
Source: Gazeta