Dollar-denominated Russian bonds, default for interest payments in rubles = Fitch | Reuters

On March 15th, Fitch revealed that interest payments on Russian dollar-denominated bonds due on 16th would be equivalent to default (default) following the 30-day grace period, if made in local currency. I made it. The photo is a ruble banknote. 1 day shooting (2022 Archyde.com / Dado Ruvic)

[New York, 15th Archyde.com]-Fitch will default on interest payments on Russian dollar-denominated bonds due on the 15th and 16th, if made in the ruble, following the 30-day grace period expires. He expressed the view that it would be the case.

Two Russian dollar-denominated Eurobonds will expire on the 16th with a total interest payment of $ 117 million.

Fitch explained that if interest payments were made in the ruble, the ratings of both government bonds would be downgraded to “default (D)” following the grace period. Russia’s long-term foreign currency issuer rating will be changed to “selective default”.

The local currency-denominated issuer rating is “C”, which is consistent with the fact that interest payments on local currency-denominated government bonds were not made to foreign investors on March 2.

“I understand that the Russian Ministry of Finance has paid interest on ruble-denominated government bonds (OFZ) due in 2024 to the Federal Securities and Exchange Agency (NSD), but it was not paid to foreign investors due to central bank restrictions. I pointed out.

If payment is not made within the 30-day grace period, it is considered to be the default. Even if the OFZ document does not clearly set a grace period, the 30-day grace period will be applied.