Posted on 03/03/2022 5:12:44 AM PST by marcusmaximus
Russia’s credit ratings were downgraded deep into junk territory by Moody’s Investors Service and Fitch Ratings, with the duo highlighting the economic toll inflicted by wide-ranging sanctions and rising doubts about whether Moscow will honor its debts.
“The severity of international sanctions in response to Russia's military invasion of Ukraine has heightened macro-financial stability risks, represents a huge shock to Russia's credit fundamentals and could undermine its willingness to service government debt,” Fitch said in a statement issued late Wednesday U.S. time.
-snip-
The moves mean all three of the world’s major ratings firms now judge Russian debt to be sub-investment grade, after S&P Global Ratings downgraded Russia last week.
Offshore bonds issued by the Russian government and Russian companies have already fallen sharply, as investors have braced for potential defaults. Meanwhile, the Bank of Russia said this week, as part of a slate of actions, that it will block payments by depositories and registrars to foreign clients, including on the country’s local-currency sovereign bonds.
(Excerpt) Read more at wsj.com ...
Putin knows Democrats are working overtime to cut the US’s credit rating. The same goes for the EU. He figures it is not a problem if all the world’s major countries are voluntarily cutting their own credit ratings.
Might be a chance for Russian companies to get rid of their debt.
As leveraged as all the world’s major banking systems are, it could kick off an apocalyptic collapse if there’s a widespread default by Russian borrowers. Followed within hours by hyperinflation. I’d make sure your EOTW preps are fully stocked.
Just sayin’
The picture is fitting but it needs to have a joker poised overhead with the face of Biden and a backdrop of audience of Americans duped into thinking this Russia-Ukraine manufactured crisis has nothing to do with the Cheater-in-Chief bandied about by persons that pulled off the greatest crime of the century on November 3, 2020.
Look Putin made a mistake!
SQUIRREL!
Noody’s controlling share is owned by Warren Buffett who is a bigger ahole than Putin.
It seems to me that, at least medium term, Putin can simply borrow from China. That’s after Pooty runs down his foreign reserves and assumes the West chops dependence on Russian energy, hard.
We have counter moves to Russia borrowing from China (essentially chopping imports from China, too) but that will be quite painful in the short term, in the West.
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