Financial rating agencies Fitch and Moody’s downgraded Russia’s rating by six notches to “junk” (not recommended for investment), saying Western sanctions increase uncertainties about the country’s ability to repay its debts and weaken its economy, Reuters reports.

Russia’s financial markets have faced significant turmoil over events this week after Russian military forces launched a large-scale invasion of Ukraine – land, air and naval – one state’s largest attack on another state in Europe after the World War II. The attack prompted the West to impose harsh sanctions on Moscow.

The invasion led to a series of credit actions and warnings about the impact of sanctions on the Russian economy. Last week, the financial rating agency S&P downgraded Russia’s rating to “junk”, and Moody’s revised Russia’s rating to a downgrade, according to Agerpres.

The International Institute of Finance (IIF), the largest lobby group in the financial sector, has warned that Russia is likely to default on its foreign debt.

On Wednesday, Fitch downgraded Russia to “B” from the BBB and placed the rating under surveillance with negative implications. Moody’s also downgraded Russia’s rating to “B3” from “Baa3” by six notches.

“The severity of international sanctions in response to Russia’s military invasion of Ukraine exacerbates uncertainties about the risks to macro-financial stability, is a huge shock to Russia’s credit fundamentals and could undermine the country’s ability to repay its debts,” said the Fitch press release.

Moody’s estimates that the scope and severity of the sanctions were far above the agency’s initial expectations and will have implications for the credit rating.