Fitch downgrades Russia to 'B'; on rating watch negative

  • says has downgraded Russia's long-term foreign currency issuer default rating (idr) to 'B' from 'BBB'
  • says severity of international sanctions in response to Russia's military invasion of Ukraine has heightened macro-financial stability risks
  • developments will weaken Russia's external and public finances, severely constrain its financing flexibility
  • sanctions prohibiting transactions with CBR will have a much larger impact on Russia's credit fundamentals than any previous sanctions
  • sanctions could also weigh on Russia's willingness to repay debt
  • full implementation could render much of Russia's international reserves unusable for fx intervention
  • expects further ratcheting up of sanctions on Russian banks
  • says assume US sanctions prohibiting transactions with the ministry of finance will not impede servicing of Russia's sovereign debt but this is unclear

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CBR is the Central Bank of Russia