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S&P downgrades Russia's credit rating to junk status

By Danielle Haynes

MOSCOW, Jan. 26 (UPI) -- Standard & Poor's downgraded Russia's sovereign credit rating to junk status amid a steady decline in the country's economy.

The hits keep on coming for Russia's economy. Oil's dramatic decline, and sanctions by the United States and other European countries have put the country on a steady march toward a possible recession.

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The Russian ruble has reached an all-time low, losing more than 40 percent of its value against the U.S. dollar in 2014. After Monday's credit ranking news, the ruble fell another five percent to 68.57 against the dollar as of 5 p.m. Monday.

Now with it's new BB+ or below investment grade status from Standard & Poor's, Russia will have a harder time borrowing money, and if it does, it'll cost the country more. The credit rating agency expects inflation to rise above 10 percent in Russia in 2015.

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