Risk of Russian debt default drives S&P to downgrade country deeper into junk – The National

Risk of Russian debt default drives S&P to downgrade country deeper into junk – The National

S&P Global Ratings downgraded Russia credit rating further into "junk" territory due to the country's debt being "highly vulnerable to non-payment", the agency said.

S&P lowered its foreign and local currency sovereign credit ratings on Russia to CC from CCC-, two notches above default. It also revised downward its transfer and convertibility assessment to CC from CCC-. The country's ratings remain on a negative credit watch. Fitch Ratings and Moody's Investors Service have previously downgraded Russia's sovereign credit rating to non-investment grade junk status due to the wave of US and EU sanctions.

"Our ratings focus on an issuer's ability and willingness to meet its financial obligations in full and on time as well as in accordance with the terms of the obligation, including in the agreed currencies," S&P said in a statement late Thursday.