S&P lowers its ratings on Russia to 'CCC-/C'

S&P Global Ratings on March 3 lowered its foreign and local currency sovereign credit ratings on Russia to 'CCC-/C' from 'BB+/B' and 'BBB-/A-3', respectively, Report informs referring to the agency’s website.

“We also revised downward our transfer and convertibility assessment to 'CCC-' from 'BBB-'. The ratings remain on CreditWatch with negative implications, where we placed them on February 25, 2022.”

“We estimate that international sanctions have reduced Russia's available foreign exchange reserves by as much as one half, including foreign currency deposits and securities domiciled in the US, the EU, and Japan. This has substantially weakened Russia's external liquidity during a period of rising foreign currency demand,” reads the message.

“We understand from public information and press reports that capital control measures entail the ban on cross-border financial flows, including debt service payments of both the private sector and the government. We believe this will very likely restrict the ability of nonresident domestic and foreign currency bondholders to receive interest and/or principal payments on time.”