American credit rating agency Fitch Ratings has downgraded Russia’s credit rating from a “B” to a “C” and suggested that a sovereign default is imminent as the country continues to face economic backlash from its decision to invade neighboring Ukraine roughly two weeks ago.
CFRA head of ETF and mutual fund research Todd Rosenbluth analyzes the energy sector on 'The Claman Countdown.'’s credit rating from a "B" to a "C" and suggested that a sovereign default is imminent as the country continues to face economic backlash from its decision to invade neighboring Ukraine roughly two weeks ago.
The statement continued, "This includes the Presidential Decree of 5 March, which could potentially force a redenomination of foreign-currency sovereign debt payments into local currency for creditors in specified countries. In addition, the application of Central Bank of Russia regulation has restricted the transfer of local-currency OFZ debt coupons to non-residents since late last week.
Fitch’s announcement comes shortly after financial services company Moody’s cut Russia's credit rating to "Ca", the second-lowest rung of its ratings ladder, citing central bank capital controls that are likely to restrict payments on the country's foreign debt and lead to default.