Accessibility/Mobile Features
Skip Navigation
Skip to Content
Editorial News
Classified Sites

The Canadian Press - ONLINE EDITION

S&P cuts Russia's credit rating in the wake of Ukraine crisis

MOSCOW - The Standard & Poor's credit agency on Friday cut Russia's credit rating for the first time in more than five years, citing the capital flight and risk to investment in the wake of the Ukraine crisis.

Credit ratings are important for the economy because they determine how expensive it will be for a country or company to borrow on international markets.

Russia's economic growth slowed to 0.8 per cent in the first quarter, sharply worse than earlier forecast while spooked investors pulled about $70 billion out of the country — more than in all of 2013. However, the cut in Russia's rating from BBB to BBB- is the most tangible economic result of Russia's policies toward Ukraine so far.

BBB- is just a step above a speculative or non-investment grade.

S&P said in a statement that the revised Russia's rating because the tense situation "could see additional significant outflows of both domestic and foreign capital from the Russian economy."

Rating agencies had not cut Russia's sovereign rating since December 2008.

Moscow in March recognized a hastily called referendum in Ukraine's Black Sea peninsula of Crimea and annexed it weeks later, attracting condemnation of the West as well as sanctions targeting individuals. Secretary of State John Kerry on Thursday warned Moscow that unless it took immediate steps to de-escalate the situation, Washington would impose additional sanctions.

A senior official travelling with President Barack Obama said he is likely to call European leaders Friday to discuss the possibility of further sanctions. The official spoke on condition of anonymity because there had been no official announcement.

  • Rate this Rate This Star Icon
  • This article has not yet been rated.
  • We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high. If you thought it was well written, do the same. If it doesn’t meet your standards, mark it accordingly.

    You can also register and/or login to the site and join the conversation by leaving a comment.

    Rate it yourself by rolling over the stars and clicking when you reach your desired rating. We want you to tell us what you think of our articles. If the story moves you, compels you to act or tells you something you didn’t know, mark it high.

Sort by: Newest to Oldest | Oldest to Newest | Most Popular 0 Commentscomment icon

You can comment on most stories on brandonsun.com. You can also agree or disagree with other comments. All you need to do is register and/or login and you can join the conversation and give your feedback.

There are no comments at the moment. Be the first to post a comment below.

Post Your Commentcomment icon

Comment
  • You have characters left

The Brandon Sun does not necessarily endorse any of the views posted. Comments are moderated before publication. By submitting your comment, you agree to our Terms and Conditions. New to commenting? Check out our Frequently Asked Questions.

letters

Make text: Larger | Smaller

Brandon Sun Business Directory
Sudden Surge: Flood of 2014
Opportunity Magazine — The Bakken
Why Not Minot?
Welcome to Winnipeg

Social Media