The rating of the Russia is junk, or garbage. The rating agency decided so Standard & Poor's, which lowered the rating on Russian debt to BB+ from BBB-, with negative outlook. It means that the country is no longer reliable from a financial point of view and underwriting its government bonds is extremely risky, and moreover with far from positive prospects. Russia is thus the first country of the so-called Bric (Brazil, Russia, India, China) to lose its investment grade status.
Both the drop in oil prices and the economic sanctions following the war in Ukraine weigh on the country's accounts and budget, but above all monetary policy. “In our opinion – explains the press release – the flexibility of the monetary policy of the Russian Federation is now limited and its prospects for economic growth are weak”. According to the international agency, a further lowering of the judgment is possible "in the course of the next 12 months".
After the cut, the Russian currency collapsed at 68 rubles per dollar and 76 rubles per euro: only a year ago the exchange rate against the dollar was 35. In December the Russian Central Bank raised the cost of money by 750 basis points, bringing the main rates to 17%.
Meanwhile lon the Moscow Stock Exchange it opened more than 3% down after S&P's decision to downgrade the country's rating, announced on the Italian night with markets closed. The Micex index, denominated in rubles, however, currently limits losses to 0,25%.
