Fitch index for Russia

Last time annexation on Crimean Peninsula caused a lot of financial consequences for Russia: credit ratings agency Fitch has revised down its last outlook for Russian debt to mirror the potential impact of sanctions. This move may be the first step towards a full ratings cut. Fitch revised its outlook on Russia's creditworthiness to negative (it was “stable”), while maintaining its BBB debt rating. The next  decision was this of agency Standard & Poor's, both decisions reflected the potential impact of sanctions on Russia's economy and business environment.

The motives given by both agencies was similar:  “Since US 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”. It appears that more US or UE sanctions, as Fitch said investors from Western Europe and United States will expect restrictions to Russian entities’ access to extern financing. According Fitch if the worst prognosis fulfills, the US may prevent foreign financial institutions from doing business with Russian banks and corporations. The outlook revision on Russia's long-term debt caused Moscow's MICEX stock market index to slog nearly 3 % in early trading on Friday, 28 of March. These companies with Russian capital affected by the sanctions performed worst.