Last week, the US government blacklisted Russian companies, fired Russian diplomats, and banned US banks from buying sovereign bonds from the Russian Central Bank, the National Wealth Fund and the Finance Ministry. The United States also warned Russia of more sanctions but said it did not want an escalation.
Fitch Ratings said it did not believe these measures would undermine Russia’s macroeconomic stability or financial sector or impede debt service payments, but warned that sanctions remain a major risk factor for Russia’s credit rating outlook.
Moody’s said Russia’s lower borrowing needs would mitigate the negative impact of declining government financing options and increase the country’s already high dependence on domestic borrowing.
Foreigners have already reduced their exposure to Russian Treasury Notes (OFZ) to its lowest level in six years.