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The international rating agency S&P has downgraded Russia’s long-term sovereign credit rating in foreign currency from CCC- to CC with a negative outlook, Reuters reports.
At the same time, S&P refers to the fact that investors have not yet received a payment on coupon payments for $117.2 million on two issues of Russian Eurobonds due to technical difficulties amid sanctions. The Russian Ministry of Finance announced the day before that it had fulfilled the payment order, however, the actual ability to make these payments depends on the sanctions-induced restrictions on the access of the Central Bank and the government to managing funds in foreign currency accounts.
“We believe that debt service payments on Russian Eurobonds maturing in the next few weeks may face similar technical difficulties,” the rating agency explained.
S&P also downgraded its long-term local currency rating from CCC- to CCC, noting that Russian government debt remains vulnerable to defaults.
On February 24, Russian President Vladimir Putin made an emergency appeal to the Russians and announced a special military operation in the Donbass. In response to Russia’s actions, Western countries announced new, tougher sanctions against the Russian Federation, including those of a financial and economic nature.
You can follow the chronicle of events in connection with the situation in Ukraine here.
Source: Rosbalt
Tristin is an accomplished author and journalist, known for his in-depth and engaging writing on sports. He currently works as a writer at 247 News Agency, where he has established himself as a respected voice in the sports industry.
