Russia will soon be unable to pay its debts, according to a leading credit ratings agency.
Fitch Ratings downgraded its view of the country’s government debt, warning a default is “imminent”.
The move comes amid increasing international sanctions against Russia following its invasion of Ukraine.
A credit rating is intended to help investors understand the level of risk they face in buying a country’s debt – or bonds.
A low rating means the chances of not getting repaid is considered to be high – and so an investor will charge more to lend to that country.
This week, Moscow itself said its bond payments may be affected by sanctions.
The ratings cut – to C from B – is the second time this month Fitch has downgraded its view of Russia’s ability to pay its debts.
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