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24 Dec 2014
May Strip Russia of Investment Grade Rating - S&P
FXStreet (Mumbai) - Standard & Poor's (S&P), the credit rating agency, warned that Russia may lose its investment-grade credit rating next month as the sharp plunge of the ruble and a weak economy exert pressure on its finances.
The agency put Russia's long-term term credit rating - currently at the lowest investment grade "BBB" - on watch with "negative implications."
The move was incited by what the S&P views as "a rapid deterioration of Russia's monetary flexibility and the impact of the weakening economy on its financial system."
The S&P said there was a one-in-two likelihood of a negative rating action within 90 days, while adding that it planned to resolve the issue earlier, possibly by mid-January.
The agency put Russia's long-term term credit rating - currently at the lowest investment grade "BBB" - on watch with "negative implications."
The move was incited by what the S&P views as "a rapid deterioration of Russia's monetary flexibility and the impact of the weakening economy on its financial system."
The S&P said there was a one-in-two likelihood of a negative rating action within 90 days, while adding that it planned to resolve the issue earlier, possibly by mid-January.