On Friday, Fitch Ratings downgraded Russia’s sovereign rating to ‘BBB-‘ (from BBB) – which happens to be the lowest investment grade before the notorious “junk status” – in addition to placing Russia on a negative watch outlook.
The news from Fitch is another bruise for Russia, whose economy has been battered amid sanctions and turmoil.
However, the move by Fitch comes as no surprise as it was widely expected by investors.
Russia, once a powerful BRIC nation (Brazil, Russia, India, China) amongst its emerging market peers, will remain a dominant piece of the puzzle in the long term, however short-term issues will need to be ironed out to ensure future prosperity and to ease investor concerns.
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