Russia Rating Cut by Moody’s on Sluggish Economic Growth - Bloomberg

Russia Rating Cut by Moody’s on Sluggish Economic Growth - Bloomberg:



"Russia’s credit rating was cut to the second-lowest investment grade by Moody’s Investors Service, which cited sluggish growth prospects worsened by the crisis in Ukraine and international sanctions.



Moody’s downgraded the government one level to Baa2 from Baa1 and kept a negative outlook on the country’s rating. It is in line with Fitch Ratings Ltd.’s credit grade and one notch above that at Standard & Poor’s, which lowered Russia to BBB- in April.



Russia has spent $13 billion from its foreign reserves this month to bolster the ruble as tumbling oil prices add to the woes of the economy that is teetering toward recession amid the sanctions by the U.S. and European Union. President Vladimir Putin and European negotiators are struggling to hold together a six-week truce in eastern Ukraine, inching forward in talks to prevent the fighting from escalating."



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