Fitch and Moody’s downgrade Russia to “junk” status

Sanctions for the Ukraine invasion have triggered the downgrade of Russian credit ratings to “junk” level by the main agencies. FTSE and MSCI have removed Russian equities from their indexes calling its stock markets “uninvestable.” Fitch warned: “President Putin’s response to put nuclear forces on high alert appears to diminish the prospect of him changing course on Ukraine to the degree required to reverse rapidly tightening sanctions.”

Moscow has responded with measures to shore up its economic defenses, including the hike of the main lending rate to 20pc, a ban on the sale of securities held by foreigners, and an order to exporters to buttress the sinking rouble. The central bank has imposed a 30pc  charge on foreign currency acquisitions.

 

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