S&P lowers Russia’s foreign currency rating to SD

S&P lowers Russia’s foreign currency rating to SD
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KUALA LUMPUR (April 10): S&P Global Ratings (S&P) international agency lowered Russia’s sovereign credit rating for foreign currency from CC to SD, the agency said on its website Saturday (April 9).

It said the long-term rating for the national currency remains at the CC level in the CreditWatch list (rating review pending) with a negative prognosis.

The agency noted that Russia fulfilled its obligations on sovereign Eurobonds in rubles.

“We do not expect investors to be able to convert the payment made in rubles into dollars, or that the government will be able to convert" rubles into dollars during the 30-day grace period.

“The sanctions against Russia will be tightened again shortly,” it said.

The agency believes that this will complicate Russia’s fulfillment of obligations before foreign bond holders.