Fitch downgraded Ukraine’s credit rating further into default territory at “C” from “CC” on Wednesday, citing a recently concluded in-principle agreement with a group of creditors to restructure USD 20 billion of international bonds, writes Reuters.

A “C” rating indicates Fitch"s view that a default or default-like process for Ukraine has begun. On Monday, Ukraine said it had reached an agreement in principle with a group of creditors to restructure USD 20 billion of international bonds, bringing the war-torn country closer to an unprecedented debt rework.

The proposal provided a 37% nominal haircut on Ukraine’s outstanding international bonds, saving Kyiv USD 11.4 billion in payments over the next 3 years.