• Russia's attempt to make payments on dollar bonds with rubles constitutes a potential default, a panel ruled. 
• The Credit Derivatives Determinations Committee called the payment a "potential failure-to-pay event."
• The ruling brings Russia to the brink of its first sovereign debt default in a century. 

Russia's attempt to pay for two of its dollar bonds using rubles was deemed a potential default scenario by a derivatives industry watchdog on Wednesday, bringing the country to the brink of its first default in a century.

The Credit Derivatives Determinations Committee — a panel within the The International Swap and Derivatives Association — ruled that a "potential failure to pay" event had occurred, Reuters first reported. It is still possible for Russia to avoid a default if it manages to pay bondholders using dollars before a one-month grace period ends on May 4. 

• Ratings agency S&P Global has downgraded a slew of companies since the start of the war in Ukraine.
• This week, the agency cut Russia's sovereign rating deep into junk as sanctions have slammed its economy.
• The agency said there are already 30 corporates that have tumbled into junk territory as a direct result of the war. 

Russia's invasion of Ukraine has come with a heavy price for the government. Western sanctions have isolated it from the international financial system and choked off demand for many of its key exports. 

Sanctions have cut off Russia's access to much of its foreign reserves, threatening to plunge the country into default as it could struggle to meet its foreign debt payments. The ruble has plummeted to record lows and the country's stock market has been paralyzed for weeks. 

S&P Global this week cut Russia's credit rating to "CC", which it defines as "default imminent with little prospect for recovery." Four years ago, almost to the day, the agency awarded Russia an investment-grade "BBB-" rating. 

It's not just the government that will struggle to raise capital on the global market. Sanctions have thrown the future of many of its biggest companies into doubt. S&P Global said this week it had made 121 changes to the ratings of companies that cited the Russia-Ukraine war, rising energy prices, or both as reasons. Of that total, 77 were Russian.

"In terms of creditworthiness, the Russian-Ukraine conflict has had the largest impact on banks, with 28% of total related rating actions," the agency said.