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S&P downgrade indicates Russia headed for historic default

BOSTON (AP) — The credit ratings agency Standard & Poor's has downgraded its assessment of Russia’s ability to repay foreign debt, signaling rising prospects that Moscow will soon default on external loans for the first time in more than a century.

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BOSTON (AP) — The credit ratings agency Standard & Poor’s has downgraded its assessment of Russia’s ability to repay foreign debt, signaling rising prospects that Moscow will soon default on external loans for the first time in more than a century.

Highlights

  • S&P Global Ratings issued the downgrade to “selective default” late Friday after Russia arranged to make foreign bond payments in rubles on Monday when they were due in dollars.
  • Western sanctions have severely squeezed Russia’s economy.
  • Russia has signaled that it remains willing to pay its debts, but the Kremlin also has warned that it would do so in.
  • rubles if its overseas accounts in foreign currencies remain frozen.
  • The country has not defaulted on foreign.
  • debt since the Bolshevik Revolution in 1917, when the Soviet Union emerged.