Fitch downgrades Russia to one notch above junk

|By:, SA News Editor

Fitch downgrades Russia's sovereign rating to BBB- from BBB, placing it just one notch above junk, with a negative outlook.

Russia’s economic outlook has “deteriorated significantly since mid-2014" due to the sharp drop in the price of oil and in the value of the ruble, coupled with a steep rise in interest rates, Fitch writes.

Plunging oil prices have exposed the close link between growth and oil prices, and ruble depreciation, intense market volatility and policy rate hikes to 17% from 10% are a major shock to the banking sector, the ratings agency says.

ETFs: RSX, RUSL, RUSS, RSXJ, ERUS, RBL

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