Finance safety

Moody's Investors Service has downgraded Russia's government bond rating to Baa3/Prime 3 (P-3) from Baa2/Prime 2 (P-2), Moody’s said. The rating was also placed on review for further downgrade.

The ratings agency said the key drivers behind the downgrade are: “Moody's expectation that the substantial oil price and exchange rate shock will further undermine the country's already subdued growth prospects over the medium term; Moody's nearer-term concerns over the negative impact on the government's financial strength of the erosion in official foreign exchange buffers and fiscal revenues.”

 Moody’s downgrades Russia’s govt bond rating to Baa3