Fitch Downgrades l Russia's Long-Term Foreign Currency Issuer Default Rating, Says Agency

The 'C' rating reflects Fitch's view that a sovereign default is imminent, the agency said

© EPA/JUSTIN LANE

MOSCOW, March 9. /TASS/. Fitch Ratings has downgraded Russia's Long-Term Foreign Currency Issuer Default Rating (IDR) to 'C' from 'B', the international rating agency reported on its website.

"The 'C' rating reflects Fitch's view that a sovereign default is imminent," the agency said.

"This rating action follows our downgrade of the Long-Term Foreign-Currency IDR to 'B'/Rating Watch Negative on 2 March, and developments since then have, in our view, further undermined Russia's willingness to service government debt," the agency added.

Fitch notes that "further ratcheting up of sanctions, and proposals that could limit trade in energy, increase the probability of a policy response by Russia that includes at least selective non-payment of its sovereign debt obligations."

"To a lesser extent, the risk of imposition of technical barriers to servicing debt, including through the direct blocking of transfer of funds, or through clearing and settlement systems, have also risen somewhat since our last review," according to the press release.

Russian President Vladimir Putin said on February 24 that in response to a request by the heads of the Donbass republics he had made a decision to carry out a special military operation in Ukraine, stressing that Moscow had no plans of occupying Ukrainian territories. Western countries responded to the actions of the Russian authorities by slapping sanctions against physical and legal entities.