The international ratings agency Moody's Investors Service downgraded Russia's credit rating to Baa2 from Baa1 on October 17.
The agency cited poor growth prospects, the Ukraine crisis and the sanctions applied to Russia as a result, as well as capital flight from the country as the main reasons for the downgrade.
In a statement, Moody's said "the first driver for the downgrade...relates to the longer term damage the already weak Russian economy is likely to incur as a result of the ongoing crisis in Ukraine and, relatedly, the additional sanctions imposed against Russia."
Moody's added that it will maintain Russia's rating as "negative."
The agency said the even before the crisis in Ukraine, the International Monetary Fund said the growth rate in Russia was falling due to infrastructure problems and "shortfalls in labor skills and education."