Fitch, Moody’s downgrade Russia’s sovereign rating, say war weakens economy
Rating agencies Fitch and Moody’s have lowered the status for Russia by six places. He said Western sanctions have raised doubts about its ability to deal with the debt situation.
Fitch and Moody’s have lowered the status for Russia by six places.
rating agencies Fitch (Fitch) and Moody’s (Moody’s) Russia ,Russia, The status has been reduced by six notches. He said Western sanctions have raised doubts about its ability to deal with the debt situation. With this he told that it has made the economy (economy) also weakened. Russia’s financial markets are going through turmoil. This is the biggest attack on any European country since the Second World War. After the attack, several steps are being taken for credit rating. S&P also downgraded Russia’s rating to junk last week.
Due to the war, index providers FTSE Russell and MSCI announced on Wednesday that they would remove Russian equities from all their indexes. A top MSCI executive had earlier this week called Russia’s stock market uninvestable.
The rating of Russia’s stock market exchange also decreased
FTSE Russell had said that the decision would be applicable from March 7. Whereas, MSCI had said that its decision would be implemented in one step across all MSCI indices. It said it is moving the MSCI Russia Index from emerging markets to standalone market status.
Russia accounts for 3.24 per cent of MSCI’s emerging market benchmark. And it has a stake of about 30 basis points in the index provider’s global benchmark. The Institute of International Finance has projected a double-digit decline in economic growth this year.
Fitch downgraded Russia from “BBB” to “BBB” to “B”. The rating agency had placed the ratings on Rating Watch Negative. Moody’s ruled out the possibility of a downgrade last week. With this, the rating agency also reduced the rating of the country by six places from B3 to Baa3.
Fitch had said that such a massive downgrade of six places on a sovereign entity had been seen only once in South Korea in 1997. Fitch said in a report that the severity of international sanctions in response to Russia’s military offensive exposed risks to macro-financial stability. It was said in this report that this gives a big blow to the credit fundamentals of Russia.
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