RUSL - Odds increase for Russia's first debt default since 1998

Russia is due to make a key interest rate payment on its foreign debt on Wednesday, but with sanctions strangling its economy, Moscow is threatening to repay international bond holders in rubles. Finance Minister Anton Siluanov pointed to measures that have frozen nearly half of Russia's $643B in foreign reserves, as well as the heavy strain on the financial system. Moscow is specifically set to make a combined $117M in interest payments on two dollar-denominated bonds, which are currently trading at $0.20 on the dollar (neither of them are allowed to be repaid in rubles). Snapshot: It will be up to the ratings agencies to consider if this will be deemed a default, given the numerous technical factors that go into that classification. Russia also has a 30-day grace period after the coupon payments come due, so it will be at least another few weeks before a formal default could

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Odds increase for Russia's first debt default since 1998