Fitch Lowers Russia's Outlook to 'Negative'

On Friday the Fitch rating agency lowered its outlook on the Russia economy to 'Negative' from 'Stable', citing the potential impact of the sanctions.

The agency confirmed Russia's “BBB” rating.

“The revision of the outlook to negative reflects the potential impact of sanctions on Russia’s economy and business environment,” Fitch said in a statement.

“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 said.

Fitch’s move followed a decision by Standard & Poor’s to change its outlook on Russia to negative. Both companies affirmed Russia's ranking at BBB, the second-lowest investment grade.