Saturday, January 10, 2015

Agency Fitch downgraded the credit rating of Russia – Radio Liberty

Agency Fitch downgraded the credit rating of Russia – Radio Liberty

The international rating agency Fitch downgraded the long-term sovereign ratings of Russia’s foreign and local currency by one notch – from «BBB» to «BBB-» – with a “negative” outlook.

So now the rating of Russia on the verge of the so-called “junk level”: rating below «BBB-» considered highly risky and dangerous for investment.

According to a common statement on Friday Fitch, the decision is due to a sharp deterioration in Russia’s economic prospects compared to mid-2014 amid falling oil prices, depreciation ruble and rising interest rates.

Last year, Russia’s credit rating to ‘BBB-’ downgraded agency Standard & amp; Poor’s. EU, US, Canada, Japan, Australia introduced several packages of sanctions against a number of Russian citizens and companies, accusing Moscow of annexation of the Crimea and the destabilization of the situation in the east of Ukraine. Russia denies the charges.

             
                 Tags:
             

             economy, the sanctions, the ruble, Russia
         

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