S&P Downgrades Russia's Credit Rating Again... "Sovereign Default Imminent" (Update)

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[Asia Economy Reporter Hyunwoo Lee] The international credit rating agency Standard & Poor's (S&P) has further downgraded Russia's sovereign credit rating, maintained a negative outlook, and warned that Russia's sovereign default is imminent.

According to foreign media including CNBC on the 3rd (local time), S&P downgraded Russia's long-term dollar-denominated bonds and ruble-denominated bonds from 'BB+' and 'BBB-' respectively to 'CCC-'.

In S&P's credit ratings, BBB- is the lowest investment-grade rating. BB+ is one notch below BBB-, and from this level, it is classified as non-investment grade. The CCC- rating announced by S&P on this day is eight levels below BB+ and indicates an imminent complete default with almost no chance of recovery.

S&P also maintained a 'negative' outlook on Russia's sovereign credit rating. S&P estimated that "Russia's available foreign exchange reserves have been halved due to international sanctions."

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