NEW YORK - Rating agency S&P again cut Russia's rating to "CCC-" from its previous position of "BB+". This massive downgrade is less than a week away from the previous downgrade decision, as international sanctions continue to be imposed by a number of countries against Russia, following its invasion of Ukraine.
With the current ranking position, it further confirms that Russia's current economic condition has fallen into the 'garbage' category.
One of the policies of the Russian government in its efforts to survive the sanctions it has received is to control capital flows in order to protect the ruble exchange rate. This step is considered by S&P to limit Russia's ability to pay its debts.
"This downgrade follows the implementation of measures that we believe are likely to substantially increase the risk of default," S&P wrote in its official statement, as reported by Antara, Thursday, March 3.
Not only S&P, two similar rating agencies, namely Fitch and Moody's, had previously downgraded Russia six notches at once, to 'garbage' status, on Wednesday, March 2.
Not only about Russia's ability to meet debt obligations, the rating agencies are also considering the departure of investors and a number of global brands from Russia, along with the war conditions that rage.
The rating agency also warned of the potential for further downgrades, as it maintains a 'CreditWatch negative' status.
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