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Rating agency expects Gazprom to default

Rating agency expects Gazprom to default

Rating agency Fitch has downgraded the credit ratings of 28 Russian commodity groups and deemed “defaults of any kind a possibility”. On Saturday, Fitch cut the ratings of gas giant Gazprom, oil major Lukoil, Rusal miners, Polius, Evraz and 23 other companies from B to “mainly CC”, which means that it is “likely” that those companies will default on their commitments. Finance.

Rating agency Moody’s had previously downgraded Gazprom and Lukoil accordingly. The Russian government’s permission to repay debts to the so-called hostile countries in rubles threatens the ability of these companies to repay their creditors on time.

The European Union is among the “enemy countries”

Moscow’s list, drawn up in response to mounting Western sanctions over the invasion of Ukraine, includes European Union countries, Australia, the United Kingdom, Canada, Monaco, South Korea, the United States, Switzerland and Japan.

In early March, three major rating agencies ranked Russia’s long-term debt in the category of countries that may not be able to pay their debts due to mounting sanctions against the country. Later Fitch downgraded the credit rating further, which means that the risk of a sovereign default was “imminent” in their eyes.

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