Moody’s has downgraded Russia’s long-term issuer and senior unsecured debt ratings to Ca from B3. Moody’s said the “outlook is negative.”
Obviously, this is due to the catastrophic leadership of President Vladimir Putin and his decision to invade Ukraine and its unprovoked war with the country.
Following Russia’s decision to invade Ukraine, the world has leveled severe economic restrictions on the country including targeting Russia’s largest banks as well as a list of Russian “elites” or oligarchs. The sanctions are designed to put pressure on Russia to rethink its decision to launch a war in Europe.
Moody’s said the downgrade of Russia’s ratings was triggered by its expectation that capital controls by the Central Bank of Russia will restrict cross-border payments including for debt service on government bonds.
Meanwhile, the Russian ruble has lost about half of its value versus the dollar since the invasion commenced.
Last Friday, the Central Bank of Russia said there will be neither trading sessions nor settlements in all Moscow Exchange markets from 5 to 8 March 2022. The trading schedule of the Moscow Exchange on 9 March will be published on the Bank of Russia website on 9 March 2022 before 9:00 Moscow time.
Shares listed on certain global exchanges like the London Stock Exchange have been suspended.
Effectively, the Russian economy is collapsing, harming both the Russian government, wealthy oligarchs as well as everyday Russians.
