July 25 (Reuters) - Fitch affirmed its long-term foreign and local currency issuer default ratings (IDR) of “BBB” on Russia, citing “deteriorating” security situation in Eastern Ukraine that has strained its relations with the European Union (EU) and United States.
The outlook of Russia's IDRs is negative, according to the ratings agency. (bit.ly/1xd5xBc)
The U.S. has tightened sanctions against Russia, including imposing sanctions on its largest oil producer Rosneft, its second-largest gas producer Novatek and its third-largest bank Gazprombank.
The ratings agency said the events of July 17 are expected to result in more sanctions against the country by the U.S. and the EU.
“This will depress capital inflows to Russia, and potentially lead to higher capital outflows, putting downward pressure on reserves and growth”, Fitch said in a statement on Friday. (Reporting by Abinaya Vijayaraghavan in Bangalore; Editing by Joyjeet Das)