Moody’s Investors Service has cut its rating for Russian government bonds by one notch, putting them a rung above “speculative” or junk investment grades. Russia is struggling both with sanctions and tumbling oil prices.
Moody’s cut Russia’s credit rating for the second time in four months, lowering it one notch from Baa2 to Baa3 – the lowest level before the start of investments deemed to be speculative and with substantial risk, known more commonly as junk bonds.
“The severe – and likely to be sustained – oil price shock, alongside Russian borrowers’ highly restricted international market access due to ongoing sanctions, is undermining economic fundamentals and increasing financial stresses on both the public and the private sectors,” Moody’s said.
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