S&P Cuts Russia To Junk, Outlook Negative

Standard & Poor's Ratings Services on Monday lowered Russia's long-term foreign currency rating to a junk grade of BB+ from BBB-. "Russia's monetary policy flexibility has become more limited and its economic growth prospects have weakened," said S&P in a statement. Russia's ability to shield the economy from external shock and fiscal instability have also been compromised, it added. The outlook on the rating is negative. S&P also downgraded the country's short-term foreign currency rating to B from A-3.