Credit ratings agency Standard & Poor’s has cut Russia’s rating to one notch above “junk” status.
The move comes as foreign investors continue to take money out of the country amid tensions over the situation in Ukraine.
S&P downgraded Russia’s rating to ‘BBB-‘ from ‘BBB’.
Also on Friday, Russia’s central bank raised its key interest rate from 7% to 7.5% as it sought to defend the value of the rouble.
Announcing the downgrade, S&P said: “In our view, the tense geopolitical situation between Russia and Ukraine could see additional significant outflows of both foreign and domestic capital from the Russian economy.”
The agency said this could “further undermine already weakening growth prospects”.