From 3h ago
07:56
Introduction: Fitch says Russia debt default imminent
Russia is
on the brink of defaulting on its debts, rating agency Fitch has warned, as the
sanctions imposed since the Ukraine war batter its economy.
Fitch has
downgraded Russia’s sovereign debt to its second lowest level, down six notches
to C. That’s just one step above borrowers who have defaulted.
The agency
warns:
The ‘C’
rating reflects Fitch’s view that a sovereign default is imminent.
AFP News
Agency (@AFP)
#UPDATE
Ratings agency Fitch again downgrades Russia's sovereign debt rating farther
into junk territory from "B" to "C", saying the decision
reflects the view that a default is "imminent".
"Junk"
status is the category of countries at risk of not being able to repay their
debt pic.twitter.com/TNCfu3JFNb
March 9,
2022
Fitch said that developments since it last downgraded
Russia on March 2nd had further undermined the country’s willingness to service
government debt.
It points
to President Vladimir Putin’s decree last week that Russian creditors can use
roubles to pay some foreign currency debts, and the country’s central bank’s
restriction of some rouble-denominated debt coupon transfers.
The
intensifying sanctions could also lead Moscow to default on its obligations,
Fitch says:
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 comes after the US and UK said they will ban Russian oil, as the
economic response to the invasion of Ukraine continued to ratchet up.
Russia is
due to make its next debt repayment on March 16 -- though it would have a
30-day grace period to meet the coupon payments.
Western
sanctions, including a ban on Russia’s central bank from accessing foreign
currency reserves, have preventing Putin from accessing much of the $630bn war
chest built up in foreign currencies before the invasion.
Yesterday,
a flurry of major Western countries suspended business in Russia, with
Starbucks, Coca-Cola, Pepsi and McDonald’s joining the pullout following the
Ukraine war.
Shell
announced plans to withdraw from Russian oil and gas and Unilever has said it
will stop importing and exporting its products with Russia:
European
markets are set to open higher, with the FTSE 100 on track to jump more than 1%
at the open.
Jeremy
Naylor (@JeremyNaylor_IG)
#Wednesday
mkts: #Europe expected up but looks fragile. China down #HangSang new 5½ yr
low. List of Co's out of #Russia grows. #Oil up as US UK EU plans to ban
Russian output. #Gold near record highs. LME halts #Nickel trade - #China
trader looses billions in Nickel short. pic.twitter.com/HugYHdRw1S
March 9,
2022
The agenda
3pm: US
JOLTs job openings total in January
3.30pm GMT:
IEA weekly US oil inventory figures
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