Moody's on Sunday downgraded Russia's credit rating from junk (B3) to pre-default (Ca), outlook negative. This was reported on the website of the agency..

The downgrade of Russia's rating is due to the decision of the Russian authorities to limit cross-border payments, including for debt servicing on government bonds.

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The rating has a negative outlook, that is, a subsequent downgrade to the last step of the Moody's rating scale - C, that is, a default is possible.

Moody's predicts that Western sanctions will lead to a long - at least two-year - decline in the Russian economy. Russia's GDP is expected to fall by 7% in 2022.

The permanent depreciation of the ruble will have serious economic consequences for the population through higher inflation and lower living standards.

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Earlier, three major international rating agencies downgraded Russia's rating to junk.