Moody’s Investors Service on Friday placed Russia’s Ba1 sovereign rating on review for a possible downgrade in the wake of a prolonged decline in oil prices. The review will focus on the impact of weak oil on Russia’s economy and the government’s fiscal budget, the ratings agency said. Moody’s estimated that depressed oil prices will likely boost Russia’s debt burden by 12 percentage points over a four-year period. Oil and gas account for nearly 60% of Russia’s exports, according to the ratings agency. Along with Russia, Moody’s also placed Saudi Arabia, Qatar, Kuwait, and United Arab Emirates on review for downgrade.
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