S&P believed in Russia’s ability to survive shocks from the new sanctions :: Economy :: RBC

Long-term credit rating of Russia in foreign currency Agency S&P left at the investment level BBB – with a stable Outlook. The Agency believes that the Russian economy can survive the shocks from possible new sanctions

Photo: Andrew Lubimov / RBC

The international rating Agency S&P confirmed long-term credit rating of Russia in foreign currency at the investment level BBB – with a stable Outlook. This is stated in the message Agency.

“We believe that a strong balance of payments of Russia, combined with a flexible exchange rate and prudent fiscal planning must let the economy absorb shocks from possible new international sanctions”, — experts of the Agency.

Short-term rating of Russia in foreign currency is affirmed at A-3 (adverse economic conditions are likely to weaken the ability of the Issuer to repay the debt). Long-term rating of Russia in national currency was affirmed at BBB, short — term- at level A-2 (the Issuer has a strong capacity for repayment of this debt).

According to experts, Russia’s GDP growth will accelerate from 1.6% to 1.8% on average in 2019 — 2021. Russian economic growth will likely be supported by ongoing global economic recovery and the restrained recovery of the domestic demand”, — stated in the message S&P.

Finance Minister Anton Siluanov praised the decision of S&P

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“We commend the decision of the Agency S&P Global Ratings on the affirmation of the sovereign credit rating of Russia at BBB – with a stable Outlook. The Agency continues to appreciate as the balance of payments and the balanced budget plan and the government’s ability to effectively cope with external shocks”, — quotes “RIA Novosti” Siluanov.

According to Siluanov, the Finance Ministry expects “a continuation of the positive trend in the economic growth and responsible fiscal policy will give a good reason to improve that Agency’s sovereign credit rating of Russia”.

The Agency put Russia’s sovereign rating from “junk” zone in February 2018. Then the sovereign credit rating of Russia in foreign currency was upgraded to investment grade (BB+ to BBB-) with a stable Outlook. Russia was in a “junk” category for three years, since the beginning of 2015, when S&P and Moody’s downgraded Russian sovereign foreign currency rating to speculative grade.

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