S&P downgrades Russia and Ukraine

In the statement of S&P, it was stated that the country's long-term foreign currency credit rating was downgraded from "BBB-" to "BB+", and it was reported that the long-term local currency credit rating was lowered from "BBB" to "BBB-".

The statement noted that Russia's military intervention in Ukraine led to strong international sanctions, including on much of the country's banking system.

It was pointed out that the sanctions could have significant direct and secondary effects on economic and foreign trade activities, the confidence of residents and financial stability. It was stated that geopolitical tensions are expected to put pressure on growth by lowering private sector confidence.

Uncertainty is high regarding the evolution of the geopolitical conflict and the ultimate economic and financial repercussions of existing restrictions, as well as additional sanctions, the statement said.

Ukraine's credit rating has also been lowered

On the other hand, S&P announced that Ukraine's long-term foreign currency and local currency credit ratings were downgraded from "B" to "B-".

In the statement, it was noted that Russia's military attack on Ukraine poses a risk to Ukraine's economic growth, financial stability, external position, and public finances.

In addition, another credit rating agency, Fitch Ratings, announced that it has downgraded Ukraine's long-term foreign currency issuer default rating from "B" to "CCC".