Saturday, January 10, 2015

International rating agency Fitch downgraded the sovereign rating of Russia – Ekho Moskvy radio station

International rating agency Fitch downgraded the sovereign rating of Russia – Ekho Moskvy radio station

Further decrease, according to experts, will cause a massive outflow of investors.

At the agency’s decision, as explained on its website, influenced by the collapse of the ruble and the fall in oil prices. Continues and the negative impact of Western sanctions, due to which banks and state-owned companies do not have access to foreign markets, experts said Fitch. According to their forecast, the economic contraction will be 4%, while inflation by the end of this year will be 8.5%. Russia’s economic growth, according to the agency, may resume only in 2017. Now Russia’s ratings from agencies Fitch and Standard & amp; Poor’s are the same – they are one step away from the so-called junk level when investments are considered risky. Moreover, negative outlook, which means a possible further downgrade. In this case, the holders of Russian securities will sell them en masse, believes the former deputy chairman Sergei Aleksashenko.

Aleksashenko noted that real economic life of the country is unlikely to somehow affect. Meanwhile, an unnamed government expert told news agencies that the downgrade Russia politically motivated, and in the State Duma suggested that it was made in the interests of the United States.

Earlier, Bloomberg has put Russia in five countries, where possible default.

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