S&P cuts Russia’s rating to junk – Investec

FXStreet (Barcelona) - The Investec Team shares that S&P cut Russia’s credit rating to junk as the country’s economic growth prospects weaken.

Key Quotes

“Overnight ratings agency Standard and Poor’s cut Russia’s credit rating to junk for the first time in a decade. Russia’s economy has been struggling since the perfect storm blew over it. It started last year with the sanctions that were bought about by their actions in Ukraine which really began to hurt them once the price of oil plummeted effectively meaning their hands were tied as far as being able to remedy any of the issues caused by the low oil price. An S&P spokesman commented ‘Russia’s monetary policy flexibility has become more limited as its economic growth prospects have weakened.”