Moody’s withdraws govt of Ukraine’s Ca senior unsecured rating for business reasons

Moody's Investors Service has withdrawn the government of Ukraine's Ca senior unsecured rating on the $3 billion eurobond that Ukraine sold in December 2013, the rating agency said on its website.

"Moody's has decided to withdraw the rating for its own business reasons," it said.

As reported, in February 2016, the Law Debenture Trust Corporation plc, representing the interests of the Russian Federation as the owner of the issue of Ukrainian eurobonds for $ 3 billion, on behalf of the Ministry of Finance of Russia filed a claim with the High Court of Justice of England and Wales to recover the debt on the eurobonds. On March 29, 2017, the court approved the expedited consideration of this claim, in fact, rejecting the main objections of Ukraine and agreeing that it had obligations under the eurobonds. By its decision, the court obliged Ukraine to pay Russia the par value of the eurobonds for $ 3 billion, the amount of the unfulfilled coupon payment for $ 75 million, as well as penalty interest accrued in the amount of $ 674,000 for each day of delay, and part of the costs in the framework of the proceedings.

However, following Ukraine's complaint in September 2018, the appellate court ruled that the trial court should consider the case in full, since the argument that the eurobond issue was made under Russian pressure cannot be dismissed without a comprehensive legal process.

On December 9-12, 2019, the UK Supreme Court considered the complaints of Ukraine and Russia against this decision of the appellate court on the dispute over the eurobonds issued by Ukraine in 2013 for $ 3 billion and postponed the decision.

Source: www.en.interfax.com.ua