(Reuters) -Global ratings agency Fitch affirmed Ukraine’s long-term foreign currency sovereign credit rating at “restricted default” on Friday, saying it would remain unchanged until the country normalizes relations with most external commercial creditors.

As Ukraine’s war with Russia nears its fourth year, the prolonged conflict continues to strain the economy, pushing defense spending to about 2.96 trillion hryvnias ($70.86 billion) this year.

Talks between Ukraine and holders of its GDP warrants collapsed for a second time in six months earlier in November, further delaying efforts to restructure the $3.2 billion in bond-like instruments. The country’s central bank also cut its 2025 GDP growth forecast.

“Spending pressures will remain heavy even after the end of the war, with Ukraine

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