Tania Matiash, News Editor
Following Moody's, Fitch downgraded Russia's credit rating from B to C, which means pre-default.
This was reported by "Evropeiska Pravda" with reference to a Fitch statement.
"A rating of 'C' reflects Fitch's view that a sovereign default is imminent," the statement said.
The agency last downgraded Russia to B less than a week ago, on 3 March 2022. However, Fitch revised it in light of recent steps taken by Western countries and the Kremlin. In particular, Volodymyr Putin's decree that allows him to pay foreign currency debts in rubles to "unfriendly" countries, meaning those who imposed sanctions against the aggressor: the United States, Britain, EU countries.
"Such payments, despite any regulation within the Russian Federation, will not be considered a fulfillment of obligations and will mean default of the issuer," Fitch said.
It should be noted that in December last year, Fitch stated that it did not believe in a military clash between Russia and Ukraine.
We should recall that according to analysts at the American financial corporation Morgan Stanley, the Russian Federation risks losing its solvency in the coming months. Analysts predict Russia's default "in the Venezuelan style" in April.
Earlier, JPMorgan analysts warned that sanctions for a military invasion of Ukraine could lead to default.