The rating agency Fitch downgraded Russia’s debt rating from “B” to “C”, citing “developments that further undermined” Moscow’s willingness to continue “repaying its public debt.”
Like the other two so-called “big” rating agencies (S&P Global Ratings and Moody’s), Fitch had already placed Russia’s long-term debt in early March in the category of those who may cease to be serviced, amid a series of financial sanctions imposed by the West in Moscow due to the Russian military invasion of Ukraine.
The lower the rating, the less lenders will show confidence in Russia and will be willing to enter into loan agreements at reasonable interest rates.
Justifying its decision, Fitch cites a presidential decree signed on March 5 that could allow Russia to repay its creditors in certain countries in rubles, not foreign currency. The international house also notes the central bank’s decision to restrict the transfer of certain securities to non-residents, as well as the US-British embargo on Russian hydrocarbons.
If a moratorium is declared by Russia, it will be the first since 1998.
Follow Skai.gr on Google News
and be the first to know all the news
