...Fitch Ratings downgraded Russia s Long\01Term Foreign and Local Currency Ratings to BBB from BBB+ on 4 February, and retained Negative Outlooks on the ratings. The downgrade reflected the negative impact from the fall in commodity prices and the dislocation to global capital markets, which has left Russian banks and companies struggling to refinance external debt, and the difficulties of managing the necessary macroeconomic policy adjustments. Russia s foreign exchange reserves (FXR) have fallen by USD210bn to USD387bn, from their peak at end\01July, weakening the sovereign balance sheet. In Q408, this reflected no t only private\01sector external debt net repayments of USD36bn, but also gross capital outflows of USD94bn. Private\01sector external debt payments of around US D140bn due in 2009 will continue to be a drain on FXR. Capital outflows might ease now that banks and corporates have built up foreign\01currency...
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