Rouble down on rating downgrade

p20988World-News-7-1

Published: Tuesday 27th January 2015 by The News Editor

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The rouble is continuing to fall after a top ratings agency cut Russia’s credit rating to junk status.

Standard & Poor’s downgraded Russia’s rating to BB-plus, a non-investment grade, for the first time since 2004, citing a slide in the currency and weakening revenue from oil exports.

Russia’s economy has been hit by the double impact of weaker energy prices as well as Western sanctions over its role in Ukraine.

The rouble was 1.2% lower in early trading today, while the Micex benchmark was 0.3% higher. The rouble now costs half as much as a year ago.

The Russian economy is expected to contract by 4% to 5% this year for the first time since President Vladimir Putin took the helm in 2000.

Published: Tuesday 27th January 2015 by The News Editor

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