Fitch downgrades Ukraine as it defaults on its sovereign eurobond obligations
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.  

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.