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World|business|April 25, 2014 / 12:38 PM
Russia’s rating cut to BBB- by Standard & Poor’s

AKIPRESS.COM - 53495709a06ea8310ce719826d7bbdd9 Russia’s sovereign rating was cut to the lowest investment level at Standard & Poor’s and may face further downgrades if growth deteriorates and the U.S. and Europe apply wider sanctions over the conflict in Ukraine, the Bloomberg said.

S&P cut Russia’s rating to BBB- from BBB after lowering its outlook to negative in March, according to a statement today. S&P last downgraded Russia in December 2008.

“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,” S&P said in the statement.

The U.S. and its allies have an additional list of sanctions ready and will act on it if there is no progress de-escalating the crisis in Ukraine, where security forces are moving against pro-Russia separatists in the country’s east, U.S. President Barack Obama said yesterday in Tokyo. Russia was placed on review for a downgrade by Moody’s Investors Service on March 28 and Fitch Ratings cut its outlook to negative.

“The decision is partially expected -- Russia is almost in recession, even without sanctions,” Dmitry Dorofeev, a money manager at BCS Financial group, said by phone.

Russia’s dollar bonds due April 2020 fell for a fourth day yesterday, lifting the yield 15 basis points to 4.77 percent, the highest since March 18.

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