Russia Cut Six Levels to Junk by Fitch, More Downgrades Possible

Russia’s credit rating was cut six levels to junk by Fitch Ratings, which said the severity of international sanctions in response to the country’s invasion of Ukraine could undermine its capability and willingness to service debt.

Fitch lowered Russia to B from BBB and placed the rating on negative watch Wednesday, citing weakening external and public finances, slowing growth, elevated domestic and geopolitical risk and the potential for further sanctions.

Sanctions have “heightened macro-financial stability risks” and represent a huge shock to Russia’s credit fundamentals, the rating company said in a statement.

The Fitch downgrade puts Russia on par with …