A woman waits before inserting a 50-ruble banknote into an ATM bank machine at a branch of Sberbank in Siberia.
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Russia has seen its credit grade cut to "junk" status for the first time in over a decade, a big blow for a country that wants to be a world economic power.Standard & Poor's Monday cut Russia's rating to BB+, a non-investment grade the country last held in 2004, when it was still recovering from a painful financial collapse in the 1990s.Russia's economy is expected to contract by 4 to 5 percent this year for the first time since 2009, when the economy was hit by a global crisis.Only S&P classifies Russian debt as junk, so the country could feel a bigger financial impact if one of the other two agencies – Moody's and Fitch – downgraded their ratings as well.Alexander Kudrin from Moscow-based investment bank Sberbank CIB said the long-term market reaction to the downgrade depends on if or when the other two major ratings agencies will cut Russia's grade to non-investment.WHAT
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