Fitch Downgrades Russia Credit Rating

Fitch downgraded Russia’s credit rating in natural resource companies such as the gas giant Gazprom, oil producer Lukoil and miner Rusal, from B to CC which is junk class. Fitch warned that they along with Russia are close to default.

Fitch said that the Russian decision of 5th March to settle foreign debts in Roubles is evidence of imminent default. Fitch added, “against the backdrop of an escalating sanctions regime, could impose insurmountable barriers to many corporates’ ability to make timely payments on foreign- and local-currency debt to certain international creditors”.