Fitch downgrades credit rating, forecasts 4% Russian economic recession
Credit rating agency Fitch Ratings on the night of January 9 downgraded Russia's national credit rating from "BBB" to "BBB-", the last level above "junk", in the context of Russia's economic outlook continuing to worsen due to plunging oil prices.
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| The Russian ruble has lost a lot of value. (Source: Reuters) |
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Russia's economy has stagnated since the West imposed sanctions on the country over its annexation of Crimea and support for separatists in eastern Ukraine.
Fitch predicts Russia's economy will shrink by 4% in 2015 and maintains a negative outlook, suggesting it could downgrade Russia's rating further.
Fitch's decision is in line with Standard & Poor's, which also downgraded Russia's rating in December 2014.
In another development, Bloomberg news agency said Russia ranked 5th among the top countries likely to default.
Since the beginning of this year, the cost of insuring against default on Russian government bonds has increased by 547 basis points.
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