(MENAFN) Fitch Ratings cut Russia's credit grade to just one notch above junk level, saying plunging oil prices and Western sanctions will force a 4 percent economic contraction this year, The Peninsula Qatar reported.
The agency said that had forced it to cut its forecast for the Russian economy this year to a 4.0 percent contraction, compared with its previous forecast of a 1.5 percent contraction and growth of 0.6 percent in 2014.
"The economic outlook has deteriorated significantly since mid-2014 following sharp falls in the oil price and the rouble, coupled with a steep rise in interest rates," Fitch said.
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