The agency’s rating, for payments in foreign currencies such as dollars, has been downgraded to SDwhile the note remains on CC for payments in rubles, according to a press release from the agency, which also announces that it will immediately cease its ratings in Russia, in accordance with European Union requirements.

There is only one notch less than SD in agency size: the rating Dfor default.

We do not believe that investors will be able to convert these payments into rubles into dollars equal to the amounts originally due, nor will the government convert these payments within 30 -day increments.estimated S&P.

The agency believes that sanctions against Russia are likely to be strengthened in the coming weeks prevents Russia’s willingness and technical ability to respect the terms of its obligations to foreign debtors.

Like all states, Russia borrows money in the form of bonds, usually in dollars, and must regularly pay interest and pay capital.

A country is considered a default of payment when it is unable to fulfill its financial commitments to its creditors, which may be States, financial institutions (International Monetary Fund, World Bank, etc.) or investors in financial markets. . Default qualifies as partial when the State fails to pay part of its obligations.

Payment blocked

For weeks, Russia avoided the risk of a default, as the U.S. Treasury allowed the use of foreign currencies held by Moscow abroad to pay off foreign debts. In March, Russia paid several tranches of interest, showing its willingness and ability to pay.

But since Monday, the United States has no longer allowed Russia to repay its debt using dollars held in American banks. Therefore JP Morgan, which acted as the bank correspondent, blocked a payment.

As a result, the Russian Finance Ministry announced on Wednesday that it has settled on rubles of nearly $ 650 million to be paid on April 4.

The three major rating agencies S&P, Fitch and Moody’s act as intermediaries to declare a country as default.

But Fitch and Moody’s have already abandoned the debt review of State and Russian companies, within the framework of sanctions decided against Moscow. S&P Global Ratings was supposed to stop ratings by April 15, but finally announced on Saturday that it would stop immediately.