(Reuters) – S&P on Thursday lowered Russia’s rating to ‘CC’ from ‘CCC-‘, as the country reported difficulties meeting debt payments due on its dollar-denominated 2023 and 2043 Eurobonds.

The rating agency stated that Russia’s current payment problems are caused by international sanctions. These sanctions reduced Russia’s available foreign reserves and restricted Russia’s access to global markets, financial systems, and infrastructure.

The agency stated that “in spite of public statements from the Russian Ministry of Finance suggesting that they are still trying to transfer payment to bondholders”, it believed that Russia’s Eurobonds debt service payments due within the next few days may encounter similar technical problems. https://disclosure.spglobal.com/ratings/en/regulatory/article/-/view/type/HTML/id/2810973

Russian bonds remain at extremly distressed levels, and most Russian issues trade less than once a day according to Refinitiv data.

According to two market sources, some creditors were paid in dollars by Russian bond coupon holders who fell due on Thursday. The report said that other creditors have yet to get their funds, but they remain optimistic about the future.