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If Russia's debt becomes junk, then what?

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The ruble is down more than 3% against the dollar this Tuesday, signalling yet again that the Russian currency is still in trouble. Russia analyst Nadia Kazakova says it’s the continuing fall in oil prices that’s mostly to blame. 

She also expects Russia's sovereign debt to become 'junk' by the end of January after Standard & Poor put it on credit watch in December. Kazakova says this will be swiftly followed by an adjustment to the corporate grade.

The analyst says this will have several implications including Russian debt holders forced to review their positions. She also believes the Russian government may have to step in as the country is forced to repay creditors early due to the downgrade.