Ratings agency S&P has reported that Russia has defaulted on its foreign debt by offering payments to bondholders in rubles instead of dollars, CNN has reported.
According to the company, Russia has attempted to pay in rubles two dollar bonds that matured on April 4. S&P claims that the decision amounts to a "selective default."
It should be noted that Russia has a 30-day grace period to comply with the obligations. Despite this, on April 9, S&P downgraded Russia's long-term and short-term ratings to SD.
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The rating agency said in a press release:
"We don't expect that investors will be able to convert those ruble payments into dollars equivalent to the originally due amounts, or that the government will convert those payments within that grace period."
The information has been confirmed to CNN by John Cooper, a member of the US presidential administration.
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