International rating agency Fitch upgraded Ukraine’s foreign currency long-term issuer default rating from “RD” (limited default) to “CC”. According to the agency’s statement, published on its website on Wednesday, August 17, the reason was the restructuring of external liabilities carried out last week.

Foreign lenders have given Ukraine a two-year grace period for nearly $20 billion in future bond payments, allowing the country to avoid a default. A ‘CC’ rating means insufficient credibility, while ‘RD’ is Fitch’s last rating before full default.

The statement notes that Fitch does not generally issue forecasts for sovereign states rated ‘CCC+’ or lower. On August 12, the agency downgraded Ukraine’s long-term foreign currency rating from “C” to “RD” due to late payments on public debt. At the same time, rating agency S&P Global Ratings downgraded Ukraine’s foreign currency rating from “CC/C” to “SD/SD” (selective default).