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 Moody's Cuts Russia's Rating Outlook to 'Negative'

Moody's held Russia's overall rating at Baa1, in the low range for investment-grade bonds. Nonetheless, Russia's credit rating outlook was cut down from "stable" to "negative".

Censor.NET reports about this referring to PRIME.

The agency stated that Russia has "strong fiscal and external accounts" that Moody's does not expect to be "materially affected by the current geopolitical tensions."

Read also: Merkel Threatens Russia with New Sanctions: Progress in Ukraine Is too Slow

However, Moody's warned that the spread of the current crisis in Ukraine's eastern regions, near border with Russia, has raised the dangers of "geopolitical event risk" for Moscow, including from sanctions by the West. he organization also says it will consider downgrading Russia's rating if its domestic growth outlook deteriorates further.

If the conflict worsens, Moody's said, Russia could be vulnerable from toughened western sanctions, capital flight and a loss of market access by Russian banks and companies.

It is worth recalling that the United States and the European Union imposed the initial set of sanctions against Russia on March 17.

 
 
 
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