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Moody’s: Russia could be declared insolvent if it does not repay dollar-denominated bond issues


On April 4, Russia repaid two issues of sovereign bonds, maturing in 2022 and 2042, in rubles instead of dollars, as it was required to pay in accordance with the terms on which the bonds were issued.

“Contracts for those bonds do not contain provisions for repayment in any currency other than dollars,” Moody’s said in a press release. “Moody’s is of the opinion that investors did not get the promise included in the foreign currency payment contract until the due date,” the rating agency added.

Moody’s Investors Service announces a few days after another major rating agency, S&P Global Ratings, downgraded Russia’s country rating for foreign currency debt to “SD” (selective default), just one step above “D” “(default).

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Russia has repeatedly said it wants to service its debt, but Western sanctions have banned it from using foreign exchange reserves to repay its foreign debt.

For his part, Russian Finance Minister Anton Siluanov warned that Russia would take legal action if it was declared insolvent by the West, as Moscow had made every effort to secure its service. debt.

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