KIEV, Oct. 1 - Fitch Ratings has downgraded Naftogaz Ukrayiny's long-term foreign and local currency issuer default ratings (IDRs) to 'RD' (Restricted Default) from 'C.’

Both ratings have been placed on rating watch evolving (RWE). Fitch has affirmed the senior unsecured rating on Naftogaz's $500 million eurobond at 'C'. The recovery rating on the eurobond is 'RR4'.

The downgrade follows confirmation from Naftogaz that repayment of its $ 500 million eurobond, which matured yesterday, has not occurred, and that a standstill period to enable restructuring of the bond has commenced.