Fitch downgrades ratings of Russian companies and banks

Fitch international rating agency has downgraded the ratings of nine Russianstate-owned companies, including Gazprom and LUKOIL, to negative from stable.The agency also revised its outlook to negative from stable for 16 Russian banks, including Sberbank,Rosselkhozbank, Alfa Bank, Gazprombank and Vensheconombank, reported Itar-Tass news agency.“The rating actions follow Fitch’s revision of the Russian Federation’s Outlook to Negative from Stable and the affirmation of its Long-term foreign and local currency Issuer Default Ratings (IDRs) at ‘BBB’ on 21 March 2014,” the agency said in a press release on Monday, March 24.On March 21, Fitch revised its rating of Russia to negative from stable citing a potential impact of Western sanctions on the economy and business environment in Russia.Fitch analysts think that the direct effect from thedeclared sanctions will not be significant, but in the future investors can face new measures such as restrictions on Russian companies’ access to international capital markets.