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Russia threatened with junk status by S&P [Copy link] 中文

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Post time 2014-12-24 09:18:07 |Display all floors

The ratings agency is also a western institution in an effort to bring down the Russia.

FT reports

Russia's credit rating may be cut to junk after rating agency Standard & Poor's warned of the toll a weakening economy is having on the country's financial system.

The country currently has a BBB-rating, the lowest rung of the investment grade universe.

In a short statement on Tuesday, S&P said:

We are reviewing our assessment of Russia's monetary flexibility and the impact of the weakening economy on its financial system.

As a result, we are placing our long-term sovereign credit ratings on Russia on CreditWatch with negative implications.

That designation brings with it a higher chance of a downgrade.

Russia hung onto its investment grade status at S&P's last review in October, but since then a further decline in the oil price and a crumbling rouble has dented Russia's economic performance.

Russian banks and companies are due to repay $119bn in 2015, according to official data. A downgrade would raise the cost of refinancing for these companies.

S&P said it will make a decision on the rating by the middle of next month.

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