Support The Moscow Times!

Russia's Debt Rating Slashed Again by Moody's as Economy Falters

Russia's President Vladimir Putin attends the closing ceremony of Europe-Asia summit (ASEM) in Milan, Oct. 17, 2014.

Moody's Investors Service cut Russia's sovereign debt rating to Baa2 from Baa1, becoming the second ratings agency to cut the country's ratings this year, after S&P initiated a downgrade in April.

Moody's said the prolonged crisis in Ukraine was weighing on Russia's medium-term growth prospects.

"The military confrontation in Ukraine and escalating sanctions against Russia are likely to have an increasingly negative macroeconomic impact on Russia's investment climate," the ratings agency said Friday. The agency maintained its negative outlook on Russia.

Moody's cited the ongoing erosion of Russia's foreign exchange buffers due to low oil prices and Russian borrowers' restricted access to international markets as key drivers for the downgrade.

The agency expects real growth to start declining by the end of the year and continue falling at least until mid-2015.

Moody's also lowered Russia's long-term country ceilings for local and foreign currency debt and for local currency deposits to 'A3' from 'A2'.

Sign up for our free weekly newsletter

Our weekly newsletter contains a hand-picked selection of news, features, analysiss and more from The Moscow Times. You will receive it in your mailbox every Friday. Never miss the latest news from Russia. Preview
Subscribers agree to the Privacy Policy

A Message from The Moscow Times:

Dear readers,

We are facing unprecedented challenges. Russia's Prosecutor General's Office has designated The Moscow Times as an "undesirable" organization, criminalizing our work and putting our staff at risk of prosecution. This follows our earlier unjust labeling as a "foreign agent."

These actions are direct attempts to silence independent journalism in Russia. The authorities claim our work "discredits the decisions of the Russian leadership." We see things differently: we strive to provide accurate, unbiased reporting on Russia.

We, the journalists of The Moscow Times, refuse to be silenced. But to continue our work, we need your help.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and every contribution makes a significant impact.

By supporting The Moscow Times, you're defending open, independent journalism in the face of repression. Thank you for standing with us.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more