Rating agencies cut Russia’s credit rating to 'junk'

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Virgo 03 Mar 2022

The rating agencies Fitch and Moody’s on Thursday cut Russia’s credit rating to “junk” and say there is a significant chance that Russia would default on its debt.

The outlook of both agencies is negative, implying a considerable risk of further downgrades. Moody’s says there is a "heightened risk of disruption" to sovereign debt repayment in the face of "severe and coordinated sanctions". It added that it has "significant concerns" over Russia's willingness to service its debt. Fitch expects a "further ratcheting up of sanctions on Russian banks" and the potential for “greater domestic political uncertainty and instability".