Fitch Cuts Russia Outlook
—Fitch Ratings cut the outlook on Russia's triple-B rating to stable from positive Monday, citing rising political uncertainty and the worsening global economic outlook.
"Political risk, reflected by poor governance indicators, is a long-standing weakness compared with most other 'BBB' rated countries, and recent events have highlighted the limitations and risks associated with Russia's political model," Fitch said in a press release accompanying the outlook cut
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Although Mr. Putin is still expected to win the March 4 presidential elections, it is unclear how the country's leadership will respond to the wave of protests and the broader shift in the political landscape, Fitch said.
"In the long term, democratic development that leads to better governance could be positive for Russia's ratings, but in the short term, uncertainty has increased," the rating company said.
"Post election there is a serious chance of more far reaching and meaningful reform" said Timothy Ash, an emerging-markets analyst at Royal Bank of Scotland Group PLC in London. "Russia will not be the same post these demonstrations," he said.
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