MOSCOW, February 4 (RIA Novosti) - International rating agency Fitch announced on Wednesday it had downgraded Russia's long-term foreign and local currency rating from "BBB+" to "BBB" and short-term foreign currency rating from "F2" to "F3."

The outlook for Russia's long-term ratings remained negative, Fitch said.

"The downgrade reflects the negative impact on Russia from the fall in commodity prices and the dislocation to global capital markets that has left Russian banks and companies struggling to refinance external debt, and the difficulties Russia faces in managing the necessary macroeconomic policy adjustments," said Edward Parker, head of emerging Europe in Fitch's sovereigns team.

According to Fitch, the scale of capital outflow and the pace of decline in Russian's foreign exchange reserves have considerably weakened Russia's sovereign balance sheet.