The international debt rating agency, S&P, downgraded Russia's long-term foreign currency rating BB+/B from BBB-/A-3 and Russia's debt rating for the ruble to BBB-/A-3 from BBB/A-2.
"This debt downgrade could have significant immediate and second-round effects on its economic activity and foreign trade, as well as financial stability," S&P said in a statement.
In addition to cutting Russia's debt rating, S&P has also downgraded Ukraine's credit rating.
In which, Ukraine's long-term debt rating in foreign and local currencies is B- from B. The downgrade cites risks to the country's economic growth and financial stability from the Russian invasion.
Further, S&P said it could downgrade its debt rating further if the uncertainty posed by the crisis persists and leads to a drain on Ukraine's external liquidity, its financial system or government administrative capacity.
Russia's military offensive in Ukraine has added significant downside risks to Ukraine's economic prospects, and a disruption in its government may put its commercial debt payments at risk, the ratings agency said.
"The negative economic effects of the conflict are difficult to quantify at this time, but will weigh on Ukraine's creditworthiness," S&P added.
S&P's move follows ratings agency Fitch, which previously cut Ukraine's country rating by three notches, pushing it deeper into junk territory. Meanwhile Moody's has reviewed its rating for a downgrade.
