Skip to content

Rubles for Dollar Debt Presages a Russian Default, Moody’s Warns

  • Moody’s has previously withdrawn ratings on Russian entities
  • Payments on April 4 for bonds due in 2022, 2042 in question
Ruble Currency As Russia’s Economy Weathers Pandemic

Source: Bloomberg

Updated on

Russia’s recent payments on dollar bonds in rubles rather than greenbacks would be “considered a default” if the situation isn’t remedied within 30 days of the money being due, according to credit assessor Moody’s Investors Service. 

While Moody’s said its comments did not constitute a credit rating shift, it warned in a Thursday statement that the move by Russia’s government to meet two obligations on April 4 in local currency marks a change in payment terms from the bonds’ original contracts.