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S&P cuts Crimea’s rating to default grade..payback

April 3, 2014

Follow The Money


Standard & Poor’s has cut its long-term rating for Crimea, after it failed to pay interest on bonds of $12 million on time. Crimea’s communications minister said the move was part of a broader “information war” against Russia and the Black Sea peninsula.

“On March 21, 2014, the Autonomous Republic of Crimea missed a scheduled coupon payment of Ukrainian hryvnia (UAH) 4.8 million on its UAH133 million bond,” S&P said in a statement.

The agency lowered Crimea to a default ‘D’ rating from the extremely speculative ‘CCC’, adding that it’s also withdrawing ratings on Crimea “at the issuer’s request.”

S&P added it understood that it was the Ukrainian treasury, where Crimea’s holds its general funds, that didn’t make the payment.

“According to information we have received from Crimean government officials that we understand are managing Crimea’s debt, Crimea had sufficient cash in its budgeted general fund on the coupon…

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