Fitch warns a Russian debt default is 'imminent' as it cuts the country's credit rating again

[Rogue Valley]

Fitch warns a Russian debt default is 'imminent' as it cuts the country's credit rating again

3.9.22
Fitch Ratings is anticipating an "imminent" Russian default, it said as it cut the country's credit rating for the second time in seven days. The downgrade from B to a C rating "reflects Fitch's view that a sovereign default is imminent," Fitch said in a statement issued Tuesday. The statement added that this second downgrade – following the downgrade to the B rating on March 2 – comes because "developments since then have, in our view, further undermined Russia's willingness to service government debt." "More generally, the further ratcheting up of sanctions, and proposals that could limit trade in energy, increase the probability of a policy response by Russia that includes at least selective non-payment of its sovereign debt obligations," the statement added. This latest cut represents another six-notch drop for Russia as its ongoing invasion of Ukraine draws international condemnation. S&P Global has already downgraded the country's rating twice since the invasion of Ukraine and Moody's cut its rating in tandem with Fitch on Thursday last week.

The Russian rouble may have to be formally devalued by the central bank.

A rouble in Aug. 2008 was worth 43¢. A rouble today is worth roughly 12¢ and sinking.

Last week Russian oligarchs lost ~$80 billion.

 

[MamboDervish]

The Russian rouble may have to be formally devalued by the central bank.

A rouble in Aug. 2008 was worth 43¢. A rouble today is worth roughly 12¢ and sinking.

Last week Russian oligarchs lost ~$80 billion.

Good news all around!

 

[Roadvirus]

And Putzin will have no one to blame but himself.