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S&P downgrades Russia’s foreign currency credit rating to “specific default” – SABC News

On Saturday, S&P downgraded Russia’s foreign currency credit rating to “specific defaults” due to the increased risk that Moscow will not be able and willing to meet its obligations to foreign creditors.

Russia faces centuries of sanctions over its invasion of Ukraine, and Russia could face its first external arrears in more than a century after taking steps to repay international bonds in ruins this week, even if the payment was in dollars.

S&P said in a statement that it understood Russia had paid coupons and principal on euro-denominated euro bonds in ruins on Monday.

“We do not currently expect investors to be able to convert these ruined payments into dollars equivalent to the original amounts, or for the government to convert those payments within 30 days.

Sanctions against Russia are likely to increase further in the coming weeks, the agency said.

Russia’s finance minister said on Thursday that the country would do everything possible to pay its creditors, but investors in Russia’s international bonds are facing an increasingly uncertain way to recover their money if the country falls into default.

S&P assigns a specific default rating when it considers that a debtor has chosen a default on a specific issue or category of liabilities, but will continue to meet its payment obligations on other issues or categories of liabilities in a timely manner.

Russia has not been able to repay its foreign debts since the aftermath of the 1917 revolution, but their bonds have now emerged as a focal point in their economic longing for Western nations.

Defaults were indescribable until recently, when Russia was assessed as an investment stage in the run-up to its invasion of Ukraine on February 24, which Moscow calls a “special military operation”.

S&P downgrades Russia’s foreign currency credit rating to “specific default” – SABC News

Source link S&P downgrades Russia’s foreign currency credit rating to “specific default” – SABC News

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