Fitch Ratings on October 6 took the following rating actions on Ukraine: Long-term foreign currency issuer default rating (IDR) was downgraded to 'RD' (Restricted Default) from 'C'; Long-term local currency IDR was affirmed at 'CCC'; while Short-term foreign currency IDR was downgraded to 'RD' from 'C'.

What is more, Fitch said in a statement, Senior unsecured foreign-currency issue ratings on all outstanding external issues were affirmed at 'C'; Senior unsecured local-currency issue ratings were affirmed at 'CCC'; and Senior unsecured foreign-currency issue ratings on all outstanding domestic issues were affirmed at 'CCC.'

Ukraine's country ceiling was affirmed at 'CCC.'

Fitch said that the 10-day grace period on Ukraine's $500 million eurobond maturing on September 23, 2015 has elapsed without payment being made. Fitch says it therefore judges Ukraine to be in default on its sovereign eurobond obligations.

On September 24, Ukraine launched the exchange offer for approximately $18 billion in direct and government-guaranteed eurobonds. Fitch say sit considers that this represents a Distressed Debt Exchange (DDE) under its criteria that results in material losses to bondholders and is being conducted to avoid default.

According to Fitch, Ukraine's ratings will be upgraded shortly after Fitch determines that the exchange has been successful.

It also says that the new rating will be consistent with Ukraine's prospective credit profile and debt structure. Ukraine's Ministry of Finance has said that it plans to conclude the exchange by October 27.

Fitch also announced that it assumes that the debt exchange offer announced on September 24 will be implemented.