S&P drags Russia’s rating deeper into junk territory

March 3 (Reuters) – Ratings agency S&P on Thursday cut Russia’s rating to “CCC-” from “BB+”, pushing it further into “junk” territory less than a week after the last downgrade.

“The downgrade follows the imposition of measures that we believe will likely substantially increase the risk of default,” the agency said.

Peers Fitch and Moody’s downgraded Russia’s rating by six notches to junk status on Wednesday, saying Western sanctions threw into doubt its ability to service debt and would weaken the economy. That sent the Russian rouble to new record lows against the dollar and euro on Thursday.

Photo – People walk in front of an electronic panel displaying the Euro currency rate and reflecting Vladimirskaya Church at an exchange office in St. Petersburg, Russia. EPA-EFE/ANATOLY MALTSEV