9:50 a.m.: Russia in ‘selective’ default on foreign currency payments, says S&P
Financial ratings agency S&P Global Ratings on Saturday downgraded Russia’s rating for foreign-currency payments to “selective default” level, after Moscow settled a dollar-denominated debt in rubles at the start of the week. The rating of the agency, for payments in foreign currencies such as the dollar, is lowered to “SD”, while the rating remains at “CC” for payments in rubles, according to a press release from the agency, which also announces immediately stop its ratings on Russia, in accordance with the requirements of the European Union.
It is only one notch lower than SD in the scale of the agency: the note “D”, for default. “We do not believe that investors will be able to convert these ruble payments into dollars equivalent to the amounts originally owed, or that the government will convert these payments within the 30-day grace period,” S&P said.