Russia’s ability to pay its debts is rapidly deteriorating and there are only two rating levels left for the Federation to be considered in default and start not making payments to major creditors, he told the largest financial rating agency, the North American Standard and Poor’s (S&P), after the closing of the New York Stock Exchange on Thursday.
In one fell swoop, S&P downgraded Russia’s rating from BB+ to CCC-, two notches, with just two more steps before reaching Class D (default, default). The trend (outlook or outlook) for today’s rating (CCC-) is “negative”. Bankruptcy is therefore approaching, according to the parameters of this rating agency.
“The military conflict between Russia and Ukraine has triggered a new round of government sanctions by G7 countries [os sete maiores do mundo]including those targeting the foreign exchange reserves of the Central Bank of Russia (BCR)”start by telling the appraisal company.
“This has rendered much of Russia’s reserves inaccessible, undermining the BCR’s ability to act as a lender of last resort and undermining what was – until recently – Russia’s most notable credit strength. : its net external liquidity position.
S&P notes that “To mitigate the resulting high volatility in the exchange rate and financial markets, and to preserve remaining foreign exchange reserves, the Russian authorities have introduced – among other measures – capital control measures which we believe could restrict non-resident treasury bondholders from timely receipt of interest and principal payments”notifies the same entity.
That’s why, “We lowered our long-term sovereign credit ratings in foreign and local currencies in Russia to ‘CCC-‘ from ‘BB+’ and ‘BBB-‘, respectively, and kept them on watch, but with a negative trend”. They can go lower in the public credit category, basically.
Luís Reis Ribeiro is a journalist Dinheiro Vivo