NEW YORK (MarketWatch) -- Standard & Poor's on Thursday said it revised its outlook on Russia's long-term sovereign credit ratings to negative from stable, citing concerns about the rising costs of Russia's banking rescue operations. S&P affirmed its BBB+ long-term foreign currency and its A- long-term local currency ratings. "The outlook revision reflects the likelihood of a downgrade if costs to the Russian government of the bank rescue operations continue to increase, amid rising capital outflows as confidence in the financial system and the monetary regime declines," S&P credit analyst Frank Gill said. "It is difficult at present to determine the ultimate impact on the public sector balance sheet of the banking system bail-out, not least due to the uncertain outlook on asset quality."

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