S&P cuts Russian debt rating to “selective default”

Standard & Poor’s downgraded Russian long-term foreign currency debt from CC to SD, ie selective default.

The downgrade reflects the rubles payment of the dollar-denominated Eurobond due April 4: “We do not expect investors to be able to convert the rubles payment into dollars, or that the government will be able to convert” the rubles in dollars during the 30-day grace period, the rating agency said. The local currency debt rating remains at CC / C.

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