Rating agency S&P Global on Thursday cut Russia’s credit rating into junk territory as fresh new international sanctions mounts on the country.
Earlier Fitch and Moody’s cut the country’s rating on Wednesday.
S&P downgraded the sovereign rating to “CCC-minus” from “BB-plus” less than a week after dropping it from investment grade.
“The downgrade follows the imposition of measures that we believe will likely substantially increase the risk of default,” the agency said.
New restrictions from the G7 countries and capital controls introduced by the Russian government to protect the rouble could constrain the nation’s ability to pay its debt, S&P said.
“We expect to resolve the CreditWatch placement once we have more clarity on the technical ability and/or willingness of the government to honor its debt obligations in full and on time.”
According to Bloomberg, Russia has over $700 million sovereign debt payment due this month. Bloomberg notes the amount of reserve it has would allow the payment but some asset might be freeze and other measure could affect its ability to make them.
