Add to favorite
Subscribe to our Newsletters Subscribe to our Newsletters Get Daily Updates RSS
russian visa

The Flexibility of the Ruble and Low Public Debt. Fitch Upgrades Russia
August 15, 2019 10:49

Russia will be less dependent on oil prices and  able to withstand Western sanctions, which in the long run will remain in force, analysts at the Fitch rating agency say. Fitch raised Russia's rating to the level of 2014.

The international rating agency Fitch upgraded Russia's long-term foreign currency credit rating BBB- to BBB with a stable outlook due to the “reliable and consistent” policy pursued by the Russian government.

"Russia continues to adhere to a robust and consistent policy that will improve macroeconomic stability, reduce the impact of oil price volatility on the economy and support increased resilience to external shocks," the Fitch report says.

The agency also notes that the increased flexibility of the ruble exchange rate and compliance with the budget rule allow the Russian economy to absorb financial, geopolitical and real economy shocks and limit the impact of oil price volatility.

Trump's tricky move: what threatens Russia with new US sanctions

Fitch predicts that in 2019 Russia will become a “net lender” - the government’s foreign exchange assets, including budget deposits in foreign currencies, will exceed its external debt. At the same time, international reserves will grow to $ 591 billion in 2021, compared to $ 520 billion now, the report said.

Read More Articles about Russian Business

The agency also recalled the second package of US sanctions against Russia in connection with the poisoning of ex-GRU officer Sergei Skripal and his daughter Julia in the UK. Restrictions relate to loans from Russia by international organizations, operations with Russian sovereign debt and the supply of goods and technologies.

State Department opens the details of new sanctions against Russia

The low level of public debt, fiscal assets and a large amount of foreign exchange reserves will allow Russia to resist these measures, the agency said. At the same time, Fitch assumes that the US and EU sanctions against Russia will remain in force "in the long term." And it is precisely the continuing threat of escalation of sanctions that will affect the possibilities for Russia to attract external financing, investments and prospects for economic growth, experts say.

Fitch downgraded Russia from BBB to BBB- in January 2015 amid falling oil prices, the ruble and sanctions imposed by Western countries against Russia in connection with the annexation of Crimea and the conflict in southeastern Ukraine. In fact, the agency returned to its assessment of the country's credit risk level  of the year 2014 before the downgrade against the backdrop of external restrictions imposed on Russia. S&P estimates the Russian rating at BBB- with a stable outlook. In February 2019, Moody's upgraded Russia's rating to the lowest level of investment level (Baa3) with a stable outlook.

Author: Anna Dorozhkina

Tags: Russian business Russian economy Russian companies   

Next Previous

You might also find interesting:

Russian law: Parliament in Action Rosneft's Lesson on How to Use Crisis as Investment Opportunity Top 20 Companies with Highest Dividends in 2013 Adygea Will Have the Exclusive Right to Use the Circassian (Adygei ) Cheese Brand Ukraine Initiates an Appeal to the Hague Tribunal After the Bombardment of Mariupol

Comment on our site

RSS   twitter   facebook   submit

Bookmark and Share

search on the map
Russian social networks  Russian history  Sverdlovsk region  Vodny island  Varvara Stepanova  recession  MTS   Moscow  Russian Cinema  Architecture of St.Petersburg  Kizhi  Russian tennis  Concerts in Moscow  Locomotives  Shnit International Short Film Festival  Project "Night in Metro"  the Don  train tickets Russia FIFA  Russian transport links  Nobel laureates  Alexander Lebedev  Russian economy  Black Sea  Russian Nature  Karachay-Cherkessia  Peace March  Mercedes-Benz Fashion Week Russia  Moscow Architecture  Central House of Artist  Archeological Finds  Russian tourism  Transaero  travel to Russia  Russian regions  skiing in Russia  booking hotels in Russia  Karelia   Russian business  Russian artists  Russian Orthodox Church  public transport in Yekaterinburg  Russian Ceramics  parking fees  Festivals in Moscow  St. Petersburg  Sergey Malyutin  Russian children  IID  Exhibitions in Moscow  Red Wings Airline  

Travel Blogs
Top Traveling Sites