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U.S. credit rating downgraded to AA from BB+

Credit rating agency Moody’s Investors Service downgraded the U.A.E. sovereign credit rating to AA+ from BB+.

The move comes as the European Union continues to weigh sanctions against Russia over its role in the Ukraine crisis.

“We expect the European Commission to make further steps toward sanctions against the Russian Federation following its meeting in Brussels this week, including a decision to hold the first EU-Russia ministerial meeting since the end of February,” Moody’s said in a statement.

Moody’s also said that if the EU’s sanctions do not end up being enforced in a way that would help Russia, it would consider rating the A.E.’s debt to be junk status.

The downgrade comes as tensions with Russia have grown in the wake of the annexation of Crimea and Russian airstrikes in Ukraine, which have caused more than 3,400 casualties.

The U.K. is the most recent European country to suspend a deal with Russia over Ukraine, saying the deal would harm economic growth.

Russia has denied involvement in the annexation, but Western leaders have said Moscow’s military intervention in Ukraine has violated a treaty that requires its ally to respect sovereignty and territorial integrity.