The US ratings agency S&P cut Ukraine's credit rating to "selective default" on Friday, citing the war-torn country's failure to make a coupon payment on an existing bond, Paralel.Az reports.

"The rating actions reflect the missed payment on the coupon of Ukraine's 2026 Eurobond," S&P said in a statement explaining its decision to downgrade Ukraine's credit rating to "SD/SD" from "CC/C."

"We do not expect the payment within the bond's contractual grace period of 10 business days," it continued, adding that this view was based on "the passage of a Ukrainian law in mid-July that authorizes the government to temporarily suspend payments" on some debt liabilities.

S&P's decision follows the July 24 decision by Fitch -- another top US ratings agency -- to downgrade Ukraine's credit rating to "C" from "CC," leaving it just one notch above default.