New Delhi: The 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.
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,” S&P said, adding that it believes that the sanctions against Russia will be tightened again shortly.
The agency believes that this will complicate Russia’s fulfillment of obligations before foreign bondholders.
However, at least 50 people, including five children, were killed in a rocket attack on a train station in the eastern Ukrainian city of Kramatorsk, which was being used for civilian evacuations. Russia has denied that it launched the attack.
(Vinayak)