Posted on 03/04/2022 8:02:18 AM PST by marcusmaximus
S&P Global slashed Russia’s credit rating on Friday for the second time in a week, stating that recent capital controls measures are increasingly likely to cause a default.
The sovereign is now rated CCC-, for both its local-currency and dollar debt. That is two notches above a default level.
A week ago, Russia was rated investment grade. The speed of its descent into the deepest levels of junk status is unprecedented, according to an S&P spokesperson.
(Excerpt) Read more at wsj.com ...
Moving that finger closer to the red button.
Yields must be sky-high. Betcha some risk seeking players are quietly buying.
Putin doesn’t care...he’s got $600+ billion in cash reserves, and he can add to that by coercing the oligarchs still in country. Don’t forget, his oil is still being sold worldwide.
Russia will be in default by the end of next week.
I met a lot of nice people when I visited Russia in ‘95. I hate what’s happening. I also met some nice people in Moscow who were from the Ukraine. Ditto.
“Yields must be sky-high.”
that would be THEORETICAL yields ... what’s the chance russia will actually ever pay off? ... and rouble-denomitated bonds, even if paid off, would be paid off in now-worthless roubles ... maybe “investors” would also be interested in Venezuelan, Greek or Nigerian bonds too ...
This is being discussed world wide. If they mis the $700b payment due, we’ll know. This could affect sovereign debt worldwide.
Pension funds can’t hold junk rated debt instruments.
“Putin doesn’t care...he’s got $600+ billion in cash reserves”
And most if it is held in banks that have frozen the funds.
Domestically my understanding is Russia has around US$60bn in foreign currency holdings. Actual cash is estimated at around US$1.2bn mostly in €500 notes.
“Putin doesn’t care..”
That avoids the problem that just anout everyone else in Russia DOES CARE. He’s a dead man walking.
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