Fitch credit rating agency had already downgraded Russian sovereign debt to junk last week: It has now downgraded it further to C, its lowest level. “The ‘C’ rating reflects Fitch’s view that a sovereign default is imminent,” the agency said in a statement, adding that its new downgrade came because recent developments had “further undermined Russia’s willingness to service government debt.”
By forcing Russia to default, the financial oligarchy is playing with fire. Such a shock on a financial system already in a collapse phase could trigger a meltdown which even a QE on steroids is not able to catch. Reuters reported, quoting from a major U.S. bank’s estimate, that the West’s exposure through its companies and its dealings with the Bank of Russia central bank, could be around $400 billion. Such debt is insured by credit default swaps, which issuers (banks) are forced to pay in case of default.
