S&P cuts Russia’s rating in foreign currencies to SD

MOSCOW, Apr 11 (PRIME) -- International rating agency S&P Global Ratings has reduced Russia’s long-term and short-term ratings in foreign currencies to selective default (SD), it said in a statement on April 9.

“It is our understanding that the Russian government made coupon and principal payments on its U.S. dollar-denominated Eurobonds in rubles when those payments were due on April 4, 2022,” the agency said.

“We currently don't expect that investors will be able to convert those ruble payments into dollars equivalent to the originally due amounts, or that the government will convert those payments within a 30-day grace period, in part because we think sanctions on Russia are likely to be further increased in the coming weeks, hampering Russia's willingness and technical abilities to honor the terms and conditions of its obligations to foreign debtholders.”

“Therefore, we lowered our unsolicited foreign currency issuer credit ratings on Russia to SD (selective default) from CC/C. Our unsolicited local currency CC/C issuer credit ratings on Russia remained on CreditWatch with negative implications.”

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