rating agency Fitch Ratings revised down the Russian debt note again on Tuesday, a decision that means the risk of a sovereign debt default is, in his eyes, “imminent”.
Fitch Ratingslike the other major rating agencies, placed the long-term Russian debt note in the risk category of not being able to be repaid at the beginning of March. The agency decided to lower it again from “B” to “C”, due to the evolution of events “that have undermined Russia’s will to repay the public debt”.
The lower this note, the less creditors will trust the country and less likely to raise money at reasonable interest rates. To justify your decision, Fitch Ratings evoked a March 5 presidential decree authorizing Russia to reimburse creditors of some countries in rubles instead of foreign currencies.
The agency also mentioned a decision by the Russian central bank to limit the transfer of some obligations to non-residents. “The strengthening of sanctions and proposals likely to limit energy trade increase the probability of a political response from Russia that includes at least a selective default on its sovereign debt,” he stressed. Fitch Ratings.
Also, technical barriers such as blocking of funds transfers may prevent debt repayment. If this were the case, it would be the first time Russia has declared a default since 1998. (I)
Source: Eluniverso
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