S&P cuts Russia's foreign currency rating to 'selective default' - SABC News - Breaking news, special reports, world, business, sport coverage of all South African current events. Africa's news leader.

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S&P on Saturday lowered Russia’s foreign currency ratings to “selective default” on increased risks that Moscow will not be able and willing to honor its commitments to foreign debt holders.

FILE PHOTO: The S&P Global logo is displayed on its offices in the financial district in New York City, US, December 13, 2018.FILE PHOTO: The S&P Global logo is displayed on its offices in the financial district in New York City, US, December 13, 2018.

Facing waves of sanctions over its invasion of Ukraine, Russia could face its first sovereign external default in over a century after it made arrangements to make an international bond repayment in rubbles this week, even though the payment was due in dollars. “We currently don’t expect that investors will be able to convert those rubble payments into dollars equivalent to the originally due amounts, or that the government will convert those payments within a 30-day grace period.”

Russia’s finance minister on Thursday said the country will do everything possible to pay its creditors, but investors in Russia’s international bonds face an increasingly uncertain path to recover their money should the country default.

 

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