Fitch warns that Russian default is "imminent"
New York-based credit ratings agency Fitch warned on March 8 that a default on Russia's sovereign debt was "imminent," as the country struggles under the pressure of Western sanctions imposed in response to Moscow's invasion of Ukraine.
In a statement on March 8, Fitch also downgraded Russia's sovereign rating from B to a junk status C, which is only one notch above default. It said a March 5 presidential decree could force a redenomination of foreign-currency sovereign debt payments into local currency for creditors in specified countries.
|
Advertisement: The National Gas Company of Trinidad and Tobago Limited (NGC) NGC’s HSSE strategy is reflective and supportive of the organisational vision to become a leader in the global energy business. |
"Further ratcheting up of sanctions and proposals that could limit trade in energy increase probability of a policy response by Russia that includes at least selective non-payment of its sovereign debt obligations," Fitch said.
Europe is looking to drastically reduce its reliance on Russian gas, and within a short period, in response to Moscow's actions in Ukraine. Some countries have even called for an outright ban on energy trade with Russia.