Russia Cut to Junk by Moody’s, Fitch as Sanctions Mount (1)

Russia’s credit rating was cut to junk by Moody’s Investors Service and Fitch Ratings as risks mount that international sanctions imposed in response to the country’s invasion of Ukraine could undermine its capability and willingness to service debt.

Moody’s downgraded Russia’s long-term foreign debt rating to B3 from Baa3 Thursday. It cited “heightened risk of disruption to sovereign debt repayment given the severe and coordinated sanctions and significant concerns around Russia’s willingness to service its obligations.”

That came after Fitch lowered Russia six levels to B from BBB and placed the rating on negative watch Wednesday, citing weakening external and ...