S&P downgrade Russian sovereign debt
Standard & Poor’s has announced that it is cutting Russia’s sovereign debt rating to BBB- with a negative outlook, that’s just above junk status.
The agency in its report said “The tense geopolitical situation between Russia and Ukraine could see additional significant outflows of both foreign and domestic capital from the Russian economy and hence further undermine already weakening growth prospects”.
The increased tension in the Ukraine, a more strident line from the United States in support of Ukraine and US criticism of Russia, as well as talk of ‘lethal aid’ for Ukraine all helped to subdue stock exchanges around the world. In Russia the Micex Index fell 1.57% and for the fifth day in a row to a total of 5.6%. The rouble weakened by a further 0.8% against the dollar.