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S&P Downgraded Russia To BBB-

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Credit ratings agency Standard & Poor’s has cut Russia’s rating to one notch above “junk” status.

The move comes as foreign investors continue to take money out of the country amid tensions over the situation in Ukraine.

S&P downgraded Russia’s rating to ‘BBB-‘ from ‘BBB’.

Also on Friday, Russia’s central bank raised its key interest rate from 7% to 7.5% as it sought to defend the value of the rouble.

Capital flight
Announcing the downgrade, S&P said: “In our view, the tense geopolitical situation between Russia and Ukraine could see additional significant outflows of both foreign and domestic capital from the Russian economy.”

The agency said this could “further undermine already weakening growth prospects”.

via BBC

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Alfonso Esparza

Alfonso Esparza

Senior Currency Analyst at Market Pulse
Alfonso Esparza specializes in macro forex strategies for North American and major currency pairs. Upon joining OANDA in 2007, Alfonso Esparza established the MarketPulseFX blog and he has since written extensively about central banks and global economic and political trends. Alfonso has also worked as a professional currency
trader focused on North America and emerging markets. He has been published by The MarketWatch, Reuters, the Wall Street Journal and The Globe and Mail, and he also appears regularly as a guest commentator on networks including Bloomberg and BNN. He holds a finance degree from the Monterrey Institute of Technology and Higher Education (ITESM) and an MBA with a specialization on financial engineering and marketing from the University of Toronto.
Alfonso Esparza

@alfonso_forex

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