The international rating agency Fitch downgraded Russia's long-term foreign currency issuer default rating from B to C. The downgrade to this level indicates that a sovereign default is imminent.
The agency had already downgraded Russia's foreign currency rating on March 2. But ongoing events around Ukraine and sanctions have further undermined Russia's ability to service its sovereign debt. This is evidenced by Russian President Vladimir Putin's decree on the possibility to pay creditors from the list of "unfriendly countries" in rubles, according to Fitch.
The agency suggests that the harsh sanctions imposed on Moscow over the attack on Ukraine pose a threat to Russia's financial stability and could make it unable to service its sovereign debt.