War in Ukraine: Russia soon unable to pay its debts, warns agency
According to a leading credit ratings agency, Russia will soon be unable to pay its debts. Fitch Ratings warned a default on the country’s government debt is imminent. This rating comes as sanctions from international powers have increased after Russia’s invasion of Ukraine.
The credit rating was cut from C to B, indicating that not getting repaid is more likely and Moscow said its bond payments may be affected by sanctions this week. The US and UK have both stated they will ban Russian oil as they intensify the economic response to Russia’s invasion of Ukraine. This is the second time Fitch Ratings has decreased Russia’s credit rating this month, the first being last week on March 2nd. Moody’s Investors Service and S&P Global Ratings have also slashed their assessments of Russia’s sovereign debt.