Standard & Poor’s downgrades Russia’s rating to CC

Credit rating agency Standard & Poor’s on Thursday downgraded Russia’s rating to CC from -CCC, as Moscow reported difficulties in meeting debt payments due on dollar-denominated bonds in 2023 and 2043.

The rating agency said Russia’s payments problems were caused by international sanctions over the invasion of Ukraine. Sanctions have reduced Moscow’s foreign exchange reserves and restricted its access to the global financial system.

Rating agencies Fitch and Moody also cited concerns about Russia’s ability to meet its debt obligations when they downgraded the country by several notches earlier in the month.

Compounding Moscow’s debt problems, the exemption that currently allows US citizens or residents to receive payments on Russian debt and equity will expire on May 25.