UPDATE: Russia May be Cut to Junk by S&P (RSX) (RUSS)

December 23, 2014 12:48 PM EST
(Updated - December 23, 2014 12:53 PM EST)

OVERVIEW

  • We are reviewing our assessment of Russia's monetary flexibility and the impact of the weakening economy on its financial system.
  • As a result, we are placing our long-term sovereign credit ratings on Russia on CreditWatch with negative implications.
  • We expect to resolve the CreditWatch upon the conclusion of our review, which we expect by mid-January.


RATING ACTION

On Dec. 23, 2014, Standard & Poor's Ratings Services placed its 'BBB-/A-3' long- and short-term foreign-currency sovereign ratings and 'BBB/A-2' local-currency sovereign credit ratings on Russia on CreditWatch with negative implications.

RATIONALE

The CreditWatch placement stems from what we view as a rapid deterioration of Russia's monetary flexibility and the impact of the weakening economy on its financial system.

CREDITWATCH

The placement of the rating on CreditWatch with negative implications reflects Standard & Poor's view that there is at least a one-in-two likelihood of a negative rating action within 90 days.

We plan to resolve the CreditWatch placement by mid-January.



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