International rating agency Fitch said it had downgraded Kyiv's long-term foreign currency issuer default rating (IDR) from pre-default level "C" to default level "D", the press service of the agency reported.
The downgrade of Kyiv's long-term foreign currency IDR follows missed payment on the city's $250 million eurobond and the subsequent activation of the cross default clause on the $300 million eurobond, according to the report.
Also, Fitch has downgraded Kyiv's long-term local currency IDR to "D" from "RD". Simultaneously Fitch has withdrawn the city of Kyiv's short-term foreign currency IDR as it is no longer considered by Fitch to be relevant to the agency's coverage because the city is no longer issuing short-term external debt.
Earlier it was reported that discussions in the past few months between representatives of the City of Kyiv and an ad hoc committee of creditors holding Notes with participation of representatives of the Ministry of Finance of Ukraine did not result in agreement on the terms of a debt restructuring operation.
On October 8, the Kyiv City Council announced it would introduce a temporary moratorium on the city's external debt payments to be effective as of November 6. As part of this decision, the Kyiv City Council suspended debt payments under two loans totaling $550 million, attracted in 2005 and 2011 through the placement of eurobonds.