The international rating agency Moody's Investors Service downgraded the rating of the Russian government from B3 to Ca. The next level of D means default.
This was reported by the agency.
The decision was prompted by Moody's expectation that capital controls by the Central Bank of Russia (CBR) would limit cross-border payments, including for debt service on government bonds.
"The downgrade to Ca is due to serious concerns about Russia's willingness and ability to repay its debt obligations," the statement said.
The negative rating outlook reflects significant risks to macroeconomic stability associated with the imposition of tough and coordinated sanctions following Russia's invasion of Ukraine.
"Concerns about the government's willingness to pay and the unpredictability of government actions could lead to greater than average historical losses for investors," the agency's analysts said.
