Russia’s credit rating looks set to tumble into junk for the first time in more than a decade. It’s a move that would exclude its bonds from a couple of high-profile indexes and set off another wave of capital outflows.
“A downgrade to junk for Russia is a foregone conclusion,” said one analyst on the back of the Fitch agency cutting its rating on Russia to ‘BBB minus’ from ‘BBB’ on Friday.
Markets are already pricing Russia as junk, according to bond yields and debt insurance costs.
Finance Minister Anton Siluanov said last month the dangers were “exaggerated”.