Ratings agency Moody’s warns Russia may have already defaulted on its debt
Russia may have already defaulted on its debt, a ratings agency has warned.
Moscow failed to make a dollar payment to its lenders earlier this month, instead paying in roubles.
Struggling: The default would mark the first time Russia has failed to repay its foreign debts since the Bolshevik revolution in 1917
This kicked off a 28-day grace period, after which the country may be deemed to have defaulted by ratings agencies such as Moody’s, in a severe blow to its reputation.
‘Russia therefore may be considered in default under Moody’s definition if not cured by May 4, which is the end of the grace period,’ a spokesman for the ratings agency said.
‘The bond contracts have no provision for repayment in any other currency other than dollars.’
The default would mark the first time Russia has failed to repay its foreign debts since the Bolshevik revolution in 1917 as sanctions bite in the wake of Vladimir Putin’s invasion of Ukraine.
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