Russia`s credit rating downgraded to junk status

Standard & Poor`s, the world`s largest credit rater, has downgraded Russia’s credit rating from an investment grade of BBB- (Baa3) to a junk rating of BB+(Ba1). It also maintained the negative outlook.

It is the first time in a decade that S&P has downgraded Russia’s rating to a junk status. According to the credit rating agency on Monday, the downgrade reflects Russia’s weakening financial system and economic growth prospects.

The Russian economy faces a bleak future as the rating downgrade followed economic sanctions by Western countries, low oil prices and the ruble’s freefall.

Russian Finance Minister Anton Siluanov criticized that the downgrade is “groundlessly pessimistic.” After the downgrade, the ruble was traded at 67.4 rubles per dollar, a 4.7 percent decline from the day before.