Wednesday, 4 February 2009

Russia: From rags to riches to rags

Fitch has finally buckled and downgraded Russia’s sovereign rating to ‘BBB’ from “BBB+” — the first such move by the agency since 1998. What is more, the agency says further cuts are still possible. Not that FT Alphaville is surprised - note this post from last December.

To blame: falling commodity prices, the dislocation of global capital markets, and difficulties with managing necessary macroeconomic policy adjustments.

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