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Fitch revises Russia’s Credit rating from stable to negative

Earlier, S&P has also changed forecast to negative
A view of the offices of Fitch Ratings in New York EPA/JUSTIN LANE
A view of the offices of Fitch Ratings in New York
© EPA/JUSTIN LANE

MOSCOW, 12 March./ITAR-TASS/ International rating agency Fitch has affirmed long-term issuer default rating (IDR) of Russia in national and foreign currencies from stable to negative, the rating agency said in a statement.

Long-term IDR affirmed at BBB, short-term foreign currency IDR - F3. Country ceiling rating was affirmed at BBB +. The outlook revision reflects the potential impact of sanctions on the economy and the business in Russia, added to Fitch. Russian economic growth slowed in 2013 to 1.3%.
"As banks and investors the US and EU are reluctant to lend to Russia now, the economy may continue to slow its growth," - said the agency.
According to Fitch analyst, the direct impact of the declared sanctions is not visible, but in the future, investors can expect the new measures, such as restricting access of Russian companies to external capital markets.
"The costs of risk have increased, and the provision of syndicated loans suspended a number of large corporations," - added the agency.

Another international rating agency Standard & Poor's has changed the outlook on Russia in national and foreign currencies to negative. Meanwhile, the agency has kept long-term sovereign rating of Russia in foreign currency at BBB and in local currency BBB +.

The outlook changed to negative from stable due to the increasing geopolitical and economic risks, the agency said.