Stock Groups

Fitch downgrades Russia’s sovereign rating to junk status -Breaking


© Reuters. This illustration shows Russian rouble coin in the picture. It was taken on March 25, 2021. REUTERS/Maxim Shemetov/Illustration


(Reuters) -Fitch has downgraded Russia’s sovereign credit rating to a ‘junk status’ on Wednesday in response to the West’s unprecedented sanctions against Russia over the invasion of Ukraine.

Fitch dropped Russia from “BBB to “B”, and put Russia’s ratings on “rating monitor negative”.

The events of recent days have caused financial turmoil in both countries. They are the largest military assault in Europe since World War Two. Moscow has been hit with severe sanctions.

Fitch indicated that they expect further tightening of the sanctions against Russian banks.

According to the rating agency, these sanctions will likely impact Russia’s ability to repay its debt.

Russia has been subject to sanctions that have increased its chances of defaulting on its dollars and international government debts, according to JPMorgan analysts (NYSE:) on Wednesday.

Fitch also stated that Russia’s GDP potential will be significantly reduced by the imposition of sanctions from Western countries, compared to Fitch’s 1.6% rating.

Last week, S&P lowered Russia’s rating to ‘junk’ status and Moody’s (NYSE:) put the country on review for a downgrade to junk.

Disclaimer: Fusion MediaThis website does not provide accurate and current data. CFDs are stocks, indexes or futures. The prices of Forex and CFDs are not supplied by exchanges. They are instead provided by market makers. As such, the prices might not reflect market values and could be incorrect. Fusion Media is not responsible for trading losses that may be incurred as a consequence of the use of this data.

Fusion MediaFusion Media and anyone associated with it will not assume any responsibility for losses or damages arising from the use of this information. This includes data including charts and buy/sell signal signals. Trading the financial markets is one of most risky investment options. Please make sure you are fully aware about the costs and risks involved.