Gazprom and other Russian hydrocarbon companies likely to default, says Fitch

Rating agency Fitch on Saturday downgraded the ratings assigned to 28 Russian natural resource groups’ debt and estimated that ” some kind of default seems possible ,

Fitch “downgraded” gas giant Gazprom, oil company Lukoil, mining companies Rusal, Polyus, Evraz and 23 other resource-related companies from B. Mainly DC Meaning ” Suitable » That these companies do not honor their financial commitments.

Moody’s also downgraded its rating

Another rating agency Moody’s also downgraded Gazprom and Lukoil’s ratings this week, indicating a very high risk of non-reimbursement.

for rating agency, authorization given by the Russian government to repay the debts contracted with the countries in the list of roubles” Opponent This could jeopardize the ability of these companies to make timely payments to their creditors.

The list includes countries in the European Union, Australia, the United Kingdom, Canada, Monaco, South Korea, the United States, Switzerland, and Japan, among other countries.

Sanctions worsen the operating environment for Russian companies

The measure is part of a series of attempts by the Russian government and the country’s central bank to limit the collapse of the national currency, the ruble, which has lost half its value since January 1 due to sanctions imposed on Moscow. West after the Russian invasion of Ukraine.

Foreign currency sales suspended, gold buys: Russia tries to avoid ruble collapse

Fitch adds that ” The continued tightening of sanctions, including restrictions on trade and energy imports, raises the prospect of a political backlash from Russia, and further weakens its economy, destroying the operating environment for its businesses. ,

The United States on Tuesday announced a ban on Russian oil and gas imports, like the United Kingdom for oil.

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Russia on the verge of error

In early March, three major rating agencies ranked Russia’s long-term debt rating as a category of countries most likely to be unable to repay their debt due to the accumulation of sanctions against them. Fitch later lowered its rating further, meaning the risk of a sovereign default was in its view.” near ,

The lower the credit rating, the lesser is the confidence of lenders in the country and less able to borrow money at reasonable interest rates.

Debt repayment: risk of “imminent” default for Russia (Fitch)