FX.co ★ Fitch and S&P cut Russia credit rating outlook

Russia’s credit rating outlook was cut to negative from stable by Fitch Ratings.
The agency cited the potential impact on a slowing economy of widening U.S. and EU sanctions imposed.
“Since U.S. and EU banks and investors may well be reluctant to lend to Russia under the current circumstances, the economy may slow further and the private sector may require official support,” Fitch said in a statement.
Meanwhile, Fitch analysts say that the direct impact is small yet; however, further measures can be expected, including the restriction of Russian companies’ access to foreign capital markets.
Prior to that, Standard & Poor's also dimmed its outlook on Russia to ‘negative’ citing heightened geopolitical risks and the prospects of economic sanctions.
In addition, the agency noted that the Bank of Russia has temporarily refused to boost the exchange rate flexibility and came to grips with the stabilization of the financial markets on the back of a sharp weakening of the ruble.
On March 20, Barack Obama extended a blacklist of Russian figures subject to travel bans and asset freezes. He included 20 more people among whom there were businessmen Gennady Timchenko, Arkady and Boris Rotenberg, Yury Kovalchuk, and President of Russian Railways Vladimir Yakunin. There are several politicians and one legal entity, Bank Rossiya, sanctioned as well.