Ratings agency Standard & Poor's cut Russia's credit rating to 'BBB-' from 'BBB' on Friday, citing the risk of marked deterioration in external financing.

The downgrade comes amid the continued escalation in the Ukraine crisis. S&P last lowered Russia's rating in December 2008.

The agency said the outlook on the country's ratings remains negative.

"Today's downgrade reflects the risk we perceive of a continuation of the large financial outflows observed in the first quarter of 2014, during which the size of Russia's financial account deficit was almost twice that of the current account surplus," S&P said in a statement.

"The tense geopolitical situation between Russia and Ukraine could see additional significant outflows of both foreign and domestic capital from the Russian economy and hence further undermine already weakening growth prospects."

Further, S&P said the negative outlook reflects its view that Russia's ratings could be lowered over the next two years if there is an increase in the risks to the country's creditworthiness.

RTTNews