MOSCOW, Dec 8: Standard and Poor’s on Monday lowered its credit ratings for Russia, citing concerns over capital flight from the country amid the global economic crisis.

The US-based ratings agency said it has lowered its foreign currency sovereign credit ratings on Russia to BBB/A-3 from BBB+/A-2, with a negative outlook.

Standard and Poor’s said in a statement that a sharp reversal in Russian investment flows amid the global economic crisis had “increased the cost and difficulty of meeting the country’s external financing needs.”

The global financial crisis has hit Russia hard, leading to an outflow of foreign capital, job losses, a gradual devaluation of the ruble and a credit squeeze.

A BBB rating means that long-term foreign currency debt owed by Russia is adequately protected but adverse economic conditions could lead to a weakened capacity to meet its financial commitments on paying back the debts.

The A-3 rating is a similar rating to BBB but applies to short-term debt.

Standard and Poor’s also lowered the long-term local currency rating to BBB+ from A-.—AFP