By Josh Beckerman
Moody's Investors Service has downgraded Russia's sovereign debt
rating to junk status, citing the conflict in Ukraine, low oil
prices and exchange-rate issues.
The rating was lowered to Ba1 from Baa 3.
Moody's believes "the government's financial strength will
diminish materially as a result of fiscal pressures and the
continued erosion of" Russia's foreign exchange reserves due to
capital outflows and restricted access to international capital
markets.
Moody's also downgraded Russia in January, signaling a possible
further downgrade.
The rating firm said at the time that it expected Russia's real
gross domestic product to grow around 5.5% in 2015 and 3% in 2016,
bringing real growth over the 10-year period through 2018 to
"virtually zero."
Write to Josh Beckerman at josh.beckerman@wsj.com
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