Fitch and Moody's downgrade Russia's debt to speculative level

Fitch and Moody’s downgrade Russia’s debt to speculative level

Such ratings place Russia’s debt in the speculative investment category.

“The reduction in several levels of the Russian note and the maintenance of vigilance (…) have been caused by the severe sanctions that Western countries have imposed on Russia”, especially against the central bank and large financial institutions , in response to the military invasion of Ukraine, states Moody’s in a statement.

The financial rating agency alludes to a “growing risk of disruption” regarding Russian debt repayment due to “coordinated sanctions” and “great concerns about Russia’s willingness” to honor its debt.

Fitch predicts in turn that there will be more severe sanctions against Russian banks. The agency affirms that in the event that the conflict continues, in a context of fragile economic growth, the risk of political instability will be greater in Russia.

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