OREANDA-NEWS The international credit rating agency S&P Global Ratings has confirmed Ukraine's long-term sovereign credit rating in foreign currency at "SD" (selective default), according to a statement issued by the agency.

The agency has not assigned a rating for the short-term foreign currency rating, which remains at "SD". The long-term rating in the national currency has been maintained at "CCC+" with a stable outlook, while the short-term rating remains at "C".

In particular, the rating on securities linked to GDP, for which payment was not made on time, has been downgraded to "D" from "CC".

"Ukraine has failed to make the $0.67 billion payment on its GDP-linked securities, which were due on June 2, 2025. Furthermore, we do not expect the payment to be made within the 10-day grace period specified in the agreement, given the government's moratorium on payments unless the bonds are restructured," the statement reads.

In the final days of May, the Ukrainian Ministry of Finance announced that it would not make a payment of over $665 million on government derivatives due on June 2, 2025. The Ministry of Finance of Ukraine has maintained that the dialogue and constructive negotiations with investors-holders of GDP warrants are ongoing.

A GDP warrant is a government-issued instrument where payments are contingent upon GDP growth: if the predetermined threshold is surpassed, holders receive additional funds. This is a mechanism that links profitability to a nation's economic performance. Ukraine is obligated to pay on 2015 GDP warrants if GDP growth exceeds 3%, which occurred in 2023.