Moody's Investors Service downgraded Russia's sovereign debt rating to Ba1 from Baa3. The outlook on the rating is negative. Ba1 rating is regarded as a non-investment grade.
The move followed a one-notch downgrade in early 2015. The decision is associated with sharp deterioration in Russia’s economic prospects due to falling oil prices, the weakening ruble and the ongoing crisis in Ukraine, Moody's press release reads.
"The continuing crisis in Ukraine and the recent oil price and exchange rate shocks will further undermine Russia's economic strength and medium-term growth prospects," it said.
According to Russia’s Finance Minister Anton Siluanov, the reduction was based on factors of a political character. He said Moody's assessment is “not only overly negative, but also based on an extremely pessimistic outlook, which has no analogues today.”
“The agency has ignored all the information provided to it about the current state of the Russian economy, its budgetary and financial policy, which has been provided to it,” the minister said.
