Russia's Credit Rating Drops to Junk Status

NEW YORK (CNNMoney)
In another blow to Russia's economy, Standard & Poor's downgraded the country's credit rating to junk status.

The rating cut will make it harder and more expensive for Russia to borrow money. Many investors are required to hold only investment grade bonds and will now be forced to sell Russian paper.

Russia's economy has been pushed to the brink of recession by oil's dramatic slide. Sanctions imposed by Western nations over Russia's actions in Ukraine have also put heavy pressure on the economy.

http://money.cnn.com/2015/01/26/inv...nk/index.html?sr=twmoney012615russia0430story

Russia’s economy has been hit hard by the double impact of weaker prices for its energy exports as well as Western sanctions.

The Russian currency tumbled on the downgrade, dropping some 7 percent to about 68.5 rubles to the dollar.

Standard & Poor’s said that Russia’s financial system is weakening, limiting room for maneuver for Russia’s Central Bank. It said the bank “faces increasingly difficult monetary policy decisions,” while also trying to preserve incentives for growth.

The Russian economy is expected to contract by 4 to 5 percent this year for the first time since President Vladimir Putin took the helm in 2000.

http://www.washingtonpost.com/busin...e7d9a2-a589-11e4-a162-121d06ca77f1_story.html