KIEV, Sept. 25 – Standard & Poor's Ratings Services has lowered its long- and short-term foreign currency sovereign credit ratings on Ukraine to 'SD' (selective default) from 'CC/C'. At the same time it affirmed its 'CCC+/C' long- and short-term local currency ratings.

The outlook on the long-term local currency rating is negative, according to the statement.

"The rating action follows the Ukrainian government's September 23 invitation to commercial bondholders to participate in a series of debt buyback auctions. Ukraine's long-term and short-term local currency ratings are not affected, as no local currency debt is included in the exchange offer. Ukraine's invitation constitutes the launch of what we consider to be a distressed debt restructuring," the statement reads.