4 Rating agency thinks Russia is failing –

Russia may soon be unable to meet its payment obligations due to strict Western sanctions over the war in Ukraine. This has further lowered Russia’s credit rating, according to credit rating agency Fitch.

Fitch previously downgraded this status to negligible, meaning investors in Russian government bonds face significant risks. Two other rating agencies, Moody’s and Standard & Poor’s, have also recently downgraded Russia’s credit rating.

As a result of the sanctions, Russia is going through difficult economic times and government revenues are being severely affected. This could make Moscow less willing to pay its debts.

Fitch has now given Russia a grade of C. That’s just a step above the status quo, indicating that a country has indeed defaulted. According to the agency, given the latest developments, Russia is likely to default on government loans soon.

The agency also cites the immediate US ban on Russian oil and gas imports. Fitch thinks that Moscow can respond to this by, for example, not paying off certain debts.

The agency also lowered Belarus’ credit status on Monday. The West imposed sanctions on the Eastern European country for collaborating with the Russian army. Close ties to Russia are a concern, Fitch said.

Source: NU