It’s S&P Global’s turn to step up the “boycott” of Russian financial institutions

Many international financial companies at the International Trade Center in Moscow, Russia. (Source: Reuters)

S&P Global Ratings said that the credit rating agency has stepped up the “boycott” of Russia, after the European Union (EU) announced a ban on providing credit ratings to legal entities, organizations or Financial agency established in Russia.

The decision comes weeks after its parent company, S&P Global, announced it would suspend commercial activities in Russia, as part of a “wave” of companies leaving the country due to other countries. The West tightened economic sanctions on Russia over the conflict with Ukraine.

Russia’s credit rating has been revised downwards in recent weeks, with S&P downgraded the country’s rating from CCC- to CC, just two places away from bankruptcy, as Russia reported difficulties. in paying due debts for European bonds 2023 and 2043 denominated in USD.

S&P says Russia’s payment problems stem from international sanctions. Western sanctions have frozen much of the Central Bank’s $640 billion in assets, banned some Russian banks from participating in the SWIFT global payment system, and made the ruble currency free fall.

According to S&P, although public statements by the Russian Ministry of Finance indicate that the government is still trying to transfer payments to bondholders, payment of Russian bonds due in the next few weeks could be met. have similar technical difficulties.

Not only S&P, Fitch and Moody’s also expressed concern about Russia’s ability to meet its debt repayment obligations when it downgraded the country’s rating a few places in early March.

Credit rating agencies Moody’s and Fitch suspended commercial operations in Russia earlier this month.