'The World's Top 3 Credit Rating Agencies' Moody's Followed by Fitch Halts Russian Operations... Only S&P Remains

[Asia Economy Reporter Jeong Hyunjin] As global financial firms continue to exit Russia following its airstrikes on Ukraine, Fitch, one of the world's top three credit rating agencies, has decided to suspend its operations in Russia, following Moody's.

On the 7th (local time), Fitch announced in a statement, "We have decided to cease commercial operations in Russia," adding, "This will be implemented immediately." It also stated that all other business activities, including credit rating services, will be halted. Fitch further explained that market analysis information on Russia will continue to be provided through analysts based in other countries. Additionally, the company will continue to support its employees in Russia while fully complying with all applicable sanctions against Russia.

Previously, Fitch, along with Moody's and Standard & Poor's (S&P), suspended ratings for several Russian banks such as VTB Bank, Promsvyazbank (PSB), Sovcombank, and Belarusian banks, which were excluded from the Society for Worldwide Interbank Financial Telecommunication (SWIFT) payment network. Moody's temporarily suspended its for-profit operations in Russia on the 5th. Moody's stated that employees outside Russia will continue related work and that company support for employees in Russia will persist. S&P has yet to announce its position regarding the suspension of operations in Russia.

Major foreign media reported, "Rating agencies likely felt a dual burden due to Western sanctions and the recent passage of legislation in Russia that severely punishes the dissemination of false information." The amendment to Russia's 'fake news law' carries penalties of up to 15 years in prison, which is interpreted as a preemptive measure to avoid such risks.

Meanwhile, Russia's credit rating has plummeted due to successive sanctions from the United States and other Western countries. Moody's downgraded Russia's credit rating by 10 notches within three days, currently rating it at 'Ca,' just one step above default. S&P has also lowered Russia's credit rating by 8 notches since the 25th of last month, and Fitch downgraded it by 6 notches, placing Russia on a 'negative watch list.'

This content was produced with the assistance of AI translation services.