S&P further lowers Russia’s rating into junk status
Russia’s credit rating was further downgraded by ratings agency S&P Global on Thursday due to increased default risk brought on by new international sanctions brought on by the country’s invasion of Ukraine and its own defensive actions.
In less than a week, S&P reduced the sovereign rating from investment grade to “CCC-minus” from “BB-plus”.
The worst attack on a European state since World War Two, Russia’s invasion of Ukraine, has rocked the financial markets as a result of sanctions imposed by many nations and a mass exodus of international brands from the country.
“The downgrade follows the imposition of measures that we believe will likely substantially increase the risk of default,” it stated.
The country’s capacity to repay its debt may be hampered by further limitations from the G7 and capital controls put in place by the Russian government to safeguard the rouble, according to S&P.
The ratings agency maintained a negative watch on the sovereign and issued a warning about additional downgrades.
