S&P, Fitch, and Moody’s withdraw Russia credit ratings

The globe’s three major credit rating agencies – S&P, Fitch, and Moody’s – withdrew ratings on Russia and Russian entities on Friday in order to comply with Ukraine-related European Union sanctions imposed on the country.

The EU prohibited international financial institutions from rating Russia and Russian firms on March 15 as part of a package of economic sanctions placed on Moscow over its military operation in Ukraine. The bloc asked the firms to withdraw their ratings by April 15.

Prior to the withdrawal, all three agencies had lowered credit ratings for Russian sovereign bonds to pre-default, after Moscow announced it could pay its obligations only in its national currency, as much of its foreign currency holdings abroad have been frozen.

Credit ratings are used by investors looking to purchase government and corporate bonds. Their withdrawal could impair Russia’s ability to borrow funds from foreign investors in the future.

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