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S&P cuts Russia's rating to junk, Moody's issues junk warning

Russia's invasion of Ukraine triggered a flurry of credit rating moves on Friday, with S&P lowering Russia's rating to 'junk' status, Moody's putting it on review for a downgrade to junk, and S&P and Fitch swiftly cutting Ukraine on default worries.

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Russia’s invasion of Ukraine triggered a flurry of credit rating moves on Friday, with S&P lowering Russia’s rating to ‘junk’ status, Moody’s putting it on review for a downgrade to junk, and S&P and Fitch swiftly cutting Ukraine on default worries.

Highlights

  • Russia’s invasion of Ukraine triggered flurry of credit rating moves on Friday.
  • S&P lowered Russia’s long-term foreign currency credit rating to ‘BB+’ from ‘BBB-’ and warned it could lower ratings further.
  • Moody’s also put Ukraine’s already-junk “B3” rating on review for a downgrade.
  • Fitch swiftly cut its Ukraine rating by a whole three notches to “CCC” from “B” It is not the first time Russia is being cut to junk after the annexation of Crimea and plunging oil prices caused a rouble currency crisis.
  • The International Monetary Fund is exploring all options to aid Ukraine with further financial support.