S&P: Russian Federation Ratings Placed On CreditWatch Negative On Review Of Monetary Flexibility And Weakening Economy

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.

source: s&p

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