DUSHANBE, January 26, 2015, Asia-Plus – US rating agency Standard and Poor’s Financial Services LLC (S&P) has put Russia’s credit rating below investment grade for the first time in a decade.
S&P gave Russia a rating of BB+, which puts it at the same level as Indonesia and Bulgaria.
This makes it harder for Russia to borrow money from investors.
A statement released by S&P says that Russia’s monetary-policy flexibility has become more limited and its economic growth prospects have weakened.
The statement notes that there is a heightened risk that external and fiscal buffers will deteriorate due to rising external pressures and increased government support to the economy.
S&P last downgraded Russia in April, but warned of impending action in late December.
Standard & Poor”s Financial Services LLC (S&P) is an American financial services company. It is a division of McGraw Hill Financial that publishes financial research and analysis on stocks and bonds. S&P is known for its stock market indices such as the U.S.-based S&P 500, the Canadian S&P/TSX, and the Australian S&P/ASX 200. S&P is considered one of the Big Three credit-rating agencies, which also include Moody”s Investor Service and Fitch Ratings. It has offices in 23 countries, and the head office is located in New York City.
