Moody’s downgraded the credit rating of Russia – Century – Daily Newspaper

Moody's downgraded the credit rating of Russia – Century – Daily Newspaper

Posted 17/01/2015 15:47. Edited 17.01.2015 15:48

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Long-term government bond rating lowered Russia by Moody’s by one notch – c Baa2 to Baa3, TASS. Investment grade Baa involves a moderate credit risk for debt securities, and they in turn belong to the medium category, and may have some speculative characteristics. The number “3″ means that the obligation remains on the bottom step of the rating category. If the rating of the Russian Federation will be lowered by one notch further, he would be speculative. In addition, reduced from “P-2″ to “P-3″ short-term rating of the Russian Federation, which indicates the issuer’s ability to repay the acceptability of short-term debt. Both ratings were placed on review for possible downgrade.

The reasons that prompted the agency to revise the rating of Russia, there were several. Agency experts expect the growth prospects of the Russian economy, which so depressed in the medium term will undermine the continuing decline in oil prices and the change in the key rate of the Central Bank. The new forecast Moody’s says that the country’s GDP in the year, which began to decline by 5.5%, while next year – by 3%. Also, the agency feared the negative impact of exchange rates and to reduce federal revenues on the financial stability of Russia. The next revision of Moody’s will assess the ability of the public balance sheet, including foreign exchange reserves to recover under pressure of low oil prices and against the background of limited access to external capital markets due to sanctions.

Recall on the eve of Russia’s rating has downgraded the agency Fitch, now he is at “BBB-” and the next step will be the “garbage” rating. Explaining his decision to Fitch just pointed to the devaluation of the ruble, the decline in oil prices, raising the key rate and the negative impact of sanctions. Agency Standard & amp; Poor’s will announce a new rating of Russia by the end of this month, to review, he was placed in December. In this case, the agency pointed out that the negative outlook revision, as the Russian economy has slowed, and the exchange rate shows a high volatility.