The US rating agency Fitch has Russia’s creditworthiness of the BBB Rating downgraded to BBB and the outlook is set to “negative”. So Russia is only slightly above the so-called “junk status”. “The outlook has deteriorated significantly since mid-2014,” Fitch said in Paris on Friday night. Reasons were the crash of the ruble exchange rate and the weak oil prices with a simultaneous increase in interest rates
At the same time, Fitch explained that the measures imposed in March against Russia for Ukraine crisis international sanctions, the economy of the country recharged. Russian banks and companies had access to foreign capital markets denied.
Fitch expects a contraction of the Russian economy by four percent in the current year. Low consumption and dwindling investment could only be partially offset by improved export situation, it said.
Russia is being shaken by a violent ruble decline, which could exacerbate the economic crisis. Due to the collapse of oil prices, but also because of Western sanctions Ukraine crisis put the ruble to
.
(APA / AFP)
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