Russia Credit Rating Is Cut to Junk by S&P for the First Time in a Decade
The skyscrapers of the Moscow International Business Center, also known as Moscow City, top right, stand beyond the illuminated Ukraine Radisson Royal hotel, in Moscow, Russia, on Oct. 28, 2014.
Photographer: Andrey Rudakov/BloombergRussia’s foreign-currency credit rating was cut to junk by Standard & Poor’s, putting it below investment grade for the first time in a decade as policy makers struggle to keep economic growth alive amid sanctions and falling oil prices.
S&P, which last downgraded Russia in April, cut the sovereign one step to BB+, according to a statement released on Monday, the same level as countries including Bulgaria and Indonesia. The ratings firm said the outlook is “negative.” Russian stocks declined and bonds fell for a second day following the announcement, which came after the close of equity trading in Moscow.