The Standard & Poor's credit agency has cut Russia's credit rating from BBB to BBB-, citing the capital flight and risk to investment in the wake of the Ukraine crisis, the Associated Press reports.

Credit ratings are important for the economy because they determine how expensive it will be for a country or company to borrow on international markets.

The cut in Russia's rating is the most tangible economic result of Russia's policies toward Ukraine so far.

Moscow in March recognized a hastily called referendum in Ukraine's Black Sea peninsula of Crimea and annexed it weeks later, attracting condemnation of the West as well as sanctions targeting individuals.

Secretary of State John Kerry on Thursday, April 24, warned Moscow that unless it took immediate steps to de-escalate the situation, Washington would impose additional sanctions.