Moody's Investors Service has today downgraded the government of Russia's debt rating by one notch to Baa2 from Baa1. The short-term rating is affirmed at Prime-2 (P-2). The outlook on the rating remains negative. The key drivers for the downgrade and for maintaining the negative outlook are the following: 1) Russia's increasingly subdued medium-term growth prospects, exacerbated by the prolongation of the Ukraine crisis, including through the impact of expanded international sanctions. 2) The gradual, but ongoing erosion of the country's foreign-exchange buffers due to capital flight, Russian borrowers' restricted ... (full story)