Courtesy of Tom Stiglich/Creators Syndicate
Standard & Poor’s has cut Russia’s credit rating to junk level, putting it below investment grade for the first time in a decade.
The international ratings agency announced on January 26 it had lowered its rating for Russian government debt to BB+ from BBB-.
It added a negative outlook on the rating, saying, “The downgrade reflects our view that Russia’s monetary policy flexibility has become more limited and its economic growth prospects have weakened.”
The ratings agency last downgraded Russia in April.
Earlier this month, Fitch Ratings cut Russia’s credit rating to BBB- and added a negative outlook on the rating.
The world’s biggest energy exporter is on the brink of a recession after crude prices fell to the lowest since 2009 and the West imposed sanctions following Russia’s annexation of Crimea in March, curbing investor appetite for the ruble.
Courtesy of Radio Free Europe/Radio Liberty (RFE/RL)
Radio Free Europe/Radio Liberty (RFE/RL) is a broadcasting organization that provides news, information, and analysis in 21 countries where free press is banned by the government or not fully established.
Copyright (c) 2014. RFE/RL, Inc. Reprinted with the permission of Radio Free Europe/Radio Liberty, 1201 Connecticut Ave NW, Ste 400, Washington DC 20036.
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