Fitch ratings agency, one of the Americas largest credit rating agencies has announced that Russian default of their national debt is imminent.
Russia has had its healthy investment rating downgraded to a “C” by Fitch, which places them in a similar category as countries such as Mozambique and Ethiopia.
The agency has cited a recent decree by Vladimir Putin allowing certain foreign debts to be paid off in Rubles, a currency which is currently worth less than eight tenths of an American cent.
Currently the Russian government has $117 million (US) in bond debts due March 17th as well as a further $65 million (US) due next week.
Analysts fear that payment in Rubles could trigger a credit default swap.