LONDON, April 25./ITAR-TASS/. International rating agency S&P has downgraded Russia’s sovereign rating from BBB to BBB- with ‘negative’ outlook. S&P has explained downgrading of Russia’s sovereign credit rating from BBB to BBB - with capital flight from the country in the first quarter of 2014 and reduced capabilities to attract funding on foreign financial markets due to current Ukrainian political crisis, the agency stated.

"We believe that the complex geopolitical situation between Russia and Ukraine may lead to additional substantial outflow of both foreign and local capital of the Russian economy, undermining the already weak growth prospects," S&P said.

Russia can establish its own rating agency

Russian Economic Minister Alexei Ulyukayev believes that an investor should be given an alternative in choosing ratings.

“The thing is that the existing rating agencies - the Big Three - are called international, but they are self-named international agencies. Generally speaking, these are US agencies. They simply have gone through a certain path of development and investors find it convenient to use them,” he said.

“We cannot force investors to switch from one rating agency to another, but we should give them an alternative. An investor should decide himself what agency will be better for him to use,” Ulyukayev said, adding that not only China, but also Europe also approved a legal framework to create their own rating agency.

Earlier Russian Deputy Prime Minister Igor Shuvalov said the government had been working to reduce dependence on foreign ratings.

“We are interested in rating agencies not to be influenced by their governments or political systems and the image or the investment rating of one or other country not to be lowered as if at a command,” he said.