Two major debt ratings agencies have slashed Russia's sovereign assessment to junk status after the West slapped a series of crippling sanctions on Moscow for its unprovoked invasion of Ukraine.
Both Fitch and Moody's said late on March 2 that they now designated Russian debt as junk, a category of countries that are seen as being at risk of not repaying their debt.
Moody's now puts the rating on Russian long-term debt at B3, down from Baa3, while Fitch lowered its rating from BBB to B. Both ratings have a negative outlook, meaning they could be downgraded further.
Russia's ruble has plummeted to record lows and the country's borrowing costs have risen sharply after the West imposed the sanctions, which have limited Russia's ability to transact in foreign currencies such as dollars and euros, frozen the assets of multiple Russian banks, and cut off Russia's banks from the SWIFT messaging system banks use to transmit information globally.
SEE ALSO: EU Cuts Seven Russian Banks From SWIFT, Bans RT And SputnikRussia invaded Ukraine on February 24.