Russia.. Two ratings above junk

[Joanne98]

MOSCOW (Reuters) - Russia's government said on Wednesday it would cut spending and shift support to banks from industries, while ratings agency Fitch highlighted the scale of the country's economic crisis by cutting its credit status.

Government officials said banks could get up to $40 billion (28 billion pounds) to recapitalise and lend some money to businesses, though companies would stop getting direct government bailouts because the state needs its foreign currency reserves to maintain broader economic stability.

Fitch's move to cut Russian foreign and local currency ratings by one notch to "BBB" -- two rankings above junk -- followed a similar move by Standard & Poor's, which in December became the first agency to downgrade Russia in a decade.

Russian stocks and the rouble held steady after the downgrade, although the euro fell versus the dollar because of traders' fears that outflows of dollars could force Russia's central bank to sell euros to rebalance its reserves.

http://uk.reuters.com/article/businessNews/idUKTRE5135E720090204

[MarcMus]

1. Thanks

Foreign currency exchange rates and the economic planning that goes into this stuff is so complicated to me, but I could understand this. I think. Thanks,