Moody’s classifies the failure to pay $100 million in coupons on two Russian foreign currency debt securities as a “default event”. The creditors of the papers did not receive the funds after the end of the 30-day grace period on Monday, the 27th.
The agency recalls that on May 25, the US Treasury Department had suspended a temporary license that allowed the processing of transactions with investors. Since then, Moscow has issued a decree that determined the payment of the liability in rubles.
“We held the view that we would likely treat ruble payments as a default for bonds that do not allow such redenomination under contractual terms,” explains Moody’s.
The institution adds that it had already declared two defaults on unrated debt issued by the Kremlin since the beginning of the invasion of Ukraine.
Moody’s considers future country defaults to be “likely”.
Source: CNN Brasil
I am Sophia william, author of World Stock Market. I have a degree in journalism from the University of Missouri and I have worked as a reporter for several news websites. I have a passion for writing and informing people about the latest news and events happening in the world. I strive to be accurate and unbiased in my reporting, and I hope to provide readers with valuable information that they can use to make informed decisions.
