Fitch on Monday, Jan 16, cut the outlook on Russia's debt due to uncertainty over protests against Prime Minister Vladimir Putin's rule which has intensified the risk of a sustained capital flight, AFP reports.
"Political uncertainty in Russia has risen and the global economic outlook has worsened since Fitch last affirmed the rating in September 2011," Fitch sovereign group director Charles Sevillesaid.
The agency affirmed its BBB rating on Russia's long-term debt but lowered the outlook to 'Stable' from 'Positive' as it noted "the limitations and risks associated with Russia's political model."
It said that it is “unclear how the country's leadership will respond to the unexpected wave of protests triggered by the elections to the Duma on December 4 and to the broader shift in the political landscape."
The agency also added that "political uncertainty increases the risk of capital flight, which could put greater pressure on Central Bank of Russia reserves and the ruble."
Russia's net private sector capital outflows soared last year to $84.2 billion – the highest figure since the 2008 global financial crisis.
