Saturday, January 17, 2015

Moody’s lowered the rating of Russian government bonds to the level of “Baa3″ – Russian newspaper

Moody's lowered the rating of Russian government bonds to the level of "Baa3″ – Russian newspaper

The rating agency Moody’s downgraded the rating of Russian government bonds at the level of “Baa2″ to the level of “Baa3″. In addition, the company stated that this level can still be revised further downgrade.

The agency explained its decision to the depreciation of the ruble and the fall in oil prices. Because of this, it is believed to Moody’s, the prospects for Russia’s economic growth in the medium term deteriorated. According to agency forecasts, GDP fell in 2015 by 5.5 percent, and in 2016 – 3 percent. In the future, the ratings of Russia in Moody’s will be adjusted based on the volume of Russia’s international reserves, the Central Bank action, the ruble exchange rate and level of oil prices. Prior to this, the rating of Russian government bonds declined Agency in October 2014.

A week ago, the international rating agency Fitch lowered for the same reasons Russia’s credit rating from “BBB” to “BBB-” with a negative outlook. This rating accepted classification is still an investment. However, following the downgrade may already slow down the flow of foreign capital into the country due to increased risks for investors. In addition, in late December for review was sent to Russia last rating agency “Big Three” – Standard & amp; Poors. At the same time he is at the level “BBB-” with a negative outlook. The decision of the agency S & amp; P rating on Russian is expected in January 2015.

The rating agencies – are commercial organizations that are engaged in the assessment of solvency and debt obligations of states and companies. “Big Three” owns about 95 percent of the market. After a series of inadequate assessments during the global economic crisis of 2008-2009, some countries, including the United States, began to take legislative solutions that would allow to reduce the economy’s dependence on international agencies’ ratings. In 2012, did the same in the European Union.

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