Fitch Downgrades Moscow's Outlook

Fitch revised its outlook for Moscow's long-term and foreign currency rating to negative from stable, the ratings agency said in a press release on Monday.

The agency affirmed Moscow's long-term local and currency rating at BBB+ and its short-term foreign currency rating at F2.

Earlier in the day, Fitch revised its outlook for Russia's rating from stable to negative, citing the risk of capital flight, the systematic weakness of its banking system and relatively high inflation.

The ratings agency also lowered its outlook for 12 Russian banks, including Sberbank, Vneshekonombank and four European banking subsidiaries of VTB.

In addition to Russia, Fitch on Monday downgraded a slew of emerging markets, including Kazakhstan, Mexico and several Eastern European countries as the global slowdown spreads to developing economies.