First modification:
The agency downgraded its sovereign rating on Russia by six notches to “junk” from “B” to “C” and warned of a possible default in response to Western sanctions over Ukraine’s invasion.
The effect of sanctions. The Fitch agency again lowered the rating of Russia’s long-term foreign currency sovereign debt from “B” to C, and assured that a default is “imminent” on the part of Russia.
Through a statement, the agency raised the rating announced on March 2, since what has happened since then “has further undermined Russia’s willingness to pay the government’s debt”, in the context of the international sanctions imposed on Russia. .
“More generally, the further escalation of sanctions and proposals that could limit energy trade increase the likelihood of a political response by Russia that includes at least the selective default of its sovereign debt obligations,” says the statement. note.
On March 16, Russia must pay some 107 million dollars in coupons for two bonds, despite the fact that it has a 30-day grace period to make the payments. The “C” rating on Fitch’s assessment is only one notch above default, but brings it in line with Moody’s current equivalent “Ca” rating.
Moody’s said its decision to cut Russia’s rating was “motivated by serious concerns about Russia’s willingness and ability to pay its debt obligations.”
According to the agency, the risk of imposing technical barriers to debt service, including through direct blocking of the transfer of funds or through clearing and settlement systems, “has also increased somewhat since our last review,” says Fitch. .
The default could occur as early as mid-April 15, when the 30-day grace period ends on coupon payments the Russian government owes on dollar bonds due 2023 and 2043, according to Morgan Stanley’s Simon Waever in a statement. note quoted by Bloomberg.
Likewise, they add that the application of the regulation of the Central Bank of Russia restricted the transfer of OFZ debt coupons in local currency to non-residents since the end of last week.
On Wednesday, Russia’s central bank lowered to $10,000 the maximum a customer will be able to withdraw in foreign currency in cash from their forex accounts, according to Sputnik. “A client can withdraw up to 10,000 US dollars in foreign currency in cash, and the rest of the funds in ruble, depending on the market exchange rate on the day of withdrawal,” the Russian issuer’s statement said.
The European Union, the United States and numerous countries have imposed dozens of economic sanctions on Russia for its invasion of Ukraine on February 24, which has so far caused more than two million refugees in neighboring countries and thousands of deaths.
With EFE and Reuters
First modification:
The agency downgraded its sovereign rating on Russia by six notches to “junk” from “B” to “C” and warned of a possible default in response to Western sanctions over Ukraine’s invasion.
The effect of sanctions. The Fitch agency again lowered the rating of Russia’s long-term foreign currency sovereign debt from “B” to C, and assured that a default is “imminent” on the part of Russia.
Through a statement, the agency raised the rating announced on March 2, since what has happened since then “has further undermined Russia’s willingness to pay the government’s debt”, in the context of the international sanctions imposed on Russia. .
“More generally, the further escalation of sanctions and proposals that could limit energy trade increase the likelihood of a political response by Russia that includes at least the selective default of its sovereign debt obligations,” says the statement. note.
On March 16, Russia must pay some 107 million dollars in coupons for two bonds, despite the fact that it has a 30-day grace period to make the payments. The “C” rating on Fitch’s assessment is only one notch above default, but brings it in line with Moody’s current equivalent “Ca” rating.
Moody’s said its decision to cut Russia’s rating was “motivated by serious concerns about Russia’s willingness and ability to pay its debt obligations.”
According to the agency, the risk of imposing technical barriers to debt service, including through direct blocking of the transfer of funds or through clearing and settlement systems, “has also increased somewhat since our last review,” says Fitch. .
The default could occur as early as mid-April 15, when the 30-day grace period ends on coupon payments the Russian government owes on dollar bonds due 2023 and 2043, according to Morgan Stanley’s Simon Waever in a statement. note quoted by Bloomberg.
Likewise, they add that the application of the regulation of the Central Bank of Russia restricted the transfer of OFZ debt coupons in local currency to non-residents since the end of last week.
On Wednesday, Russia’s central bank lowered to $10,000 the maximum a customer will be able to withdraw in foreign currency in cash from their forex accounts, according to Sputnik. “A client can withdraw up to 10,000 US dollars in foreign currency in cash, and the rest of the funds in ruble, depending on the market exchange rate on the day of withdrawal,” the Russian issuer’s statement said.
The European Union, the United States and numerous countries have imposed dozens of economic sanctions on Russia for its invasion of Ukraine on February 24, which has so far caused more than two million refugees in neighboring countries and thousands of deaths.
With EFE and Reuters
First modification:
The agency downgraded its sovereign rating on Russia by six notches to “junk” from “B” to “C” and warned of a possible default in response to Western sanctions over Ukraine’s invasion.
The effect of sanctions. The Fitch agency again lowered the rating of Russia’s long-term foreign currency sovereign debt from “B” to C, and assured that a default is “imminent” on the part of Russia.
Through a statement, the agency raised the rating announced on March 2, since what has happened since then “has further undermined Russia’s willingness to pay the government’s debt”, in the context of the international sanctions imposed on Russia. .
“More generally, the further escalation of sanctions and proposals that could limit energy trade increase the likelihood of a political response by Russia that includes at least the selective default of its sovereign debt obligations,” says the statement. note.
On March 16, Russia must pay some 107 million dollars in coupons for two bonds, despite the fact that it has a 30-day grace period to make the payments. The “C” rating on Fitch’s assessment is only one notch above default, but brings it in line with Moody’s current equivalent “Ca” rating.
Moody’s said its decision to cut Russia’s rating was “motivated by serious concerns about Russia’s willingness and ability to pay its debt obligations.”
According to the agency, the risk of imposing technical barriers to debt service, including through direct blocking of the transfer of funds or through clearing and settlement systems, “has also increased somewhat since our last review,” says Fitch. .
The default could occur as early as mid-April 15, when the 30-day grace period ends on coupon payments the Russian government owes on dollar bonds due 2023 and 2043, according to Morgan Stanley’s Simon Waever in a statement. note quoted by Bloomberg.
Likewise, they add that the application of the regulation of the Central Bank of Russia restricted the transfer of OFZ debt coupons in local currency to non-residents since the end of last week.
On Wednesday, Russia’s central bank lowered to $10,000 the maximum a customer will be able to withdraw in foreign currency in cash from their forex accounts, according to Sputnik. “A client can withdraw up to 10,000 US dollars in foreign currency in cash, and the rest of the funds in ruble, depending on the market exchange rate on the day of withdrawal,” the Russian issuer’s statement said.
The European Union, the United States and numerous countries have imposed dozens of economic sanctions on Russia for its invasion of Ukraine on February 24, which has so far caused more than two million refugees in neighboring countries and thousands of deaths.
With EFE and Reuters
First modification:
The agency downgraded its sovereign rating on Russia by six notches to “junk” from “B” to “C” and warned of a possible default in response to Western sanctions over Ukraine’s invasion.
The effect of sanctions. The Fitch agency again lowered the rating of Russia’s long-term foreign currency sovereign debt from “B” to C, and assured that a default is “imminent” on the part of Russia.
Through a statement, the agency raised the rating announced on March 2, since what has happened since then “has further undermined Russia’s willingness to pay the government’s debt”, in the context of the international sanctions imposed on Russia. .
“More generally, the further escalation of sanctions and proposals that could limit energy trade increase the likelihood of a political response by Russia that includes at least the selective default of its sovereign debt obligations,” says the statement. note.
On March 16, Russia must pay some 107 million dollars in coupons for two bonds, despite the fact that it has a 30-day grace period to make the payments. The “C” rating on Fitch’s assessment is only one notch above default, but brings it in line with Moody’s current equivalent “Ca” rating.
Moody’s said its decision to cut Russia’s rating was “motivated by serious concerns about Russia’s willingness and ability to pay its debt obligations.”
According to the agency, the risk of imposing technical barriers to debt service, including through direct blocking of the transfer of funds or through clearing and settlement systems, “has also increased somewhat since our last review,” says Fitch. .
The default could occur as early as mid-April 15, when the 30-day grace period ends on coupon payments the Russian government owes on dollar bonds due 2023 and 2043, according to Morgan Stanley’s Simon Waever in a statement. note quoted by Bloomberg.
Likewise, they add that the application of the regulation of the Central Bank of Russia restricted the transfer of OFZ debt coupons in local currency to non-residents since the end of last week.
On Wednesday, Russia’s central bank lowered to $10,000 the maximum a customer will be able to withdraw in foreign currency in cash from their forex accounts, according to Sputnik. “A client can withdraw up to 10,000 US dollars in foreign currency in cash, and the rest of the funds in ruble, depending on the market exchange rate on the day of withdrawal,” the Russian issuer’s statement said.
The European Union, the United States and numerous countries have imposed dozens of economic sanctions on Russia for its invasion of Ukraine on February 24, which has so far caused more than two million refugees in neighboring countries and thousands of deaths.
With EFE and Reuters