Moody’s lowered the rating of Russia to “junk” level – TVNZ

Moody's lowered the rating of Russia to "junk" level – TVNZ

Moody’s has downgraded Russia from Baa3 rating to Ba1, the site says the company. This rating is considered “garbage” that is, not an investment. He says about the poor state of the economy and that the securities of the country almost equal to the speculative and are considered very risky investment.

Previously, the agency Standard & amp; Poor’s lowered the rating of Russia. However, it was in the midst of devaluation and at the peak of Ukrainian conflict. That’s when all the experts predicted that in the near future and Moody’s will give Russia a black label investment. However, this occurred at a time when oil went to $ 60 per barrel, the ruble less ustakanilsya and Minsk agreement began to be fulfilled.

«Russia allowed downgrade to” junk “, but now I think it maloobyasnimym” – commented on the news of former Finance Minister Alexei Kudrin said in his microblog.

The current Minister of Finance was able to find the words to explain, he called the downgrade of politically engaged, and assessment of the state of the Russian economy “prohibitively negative».

The situation did not quite typical. Garbage rating usually get the country are in a state of preddefoltnom. However, Russia’s foreign debt is very small, especially compared to many developed countries even. Experts Moody’s explained his decision by saying that Russia is waiting for a deep recession in 2015, which delayed and in 2016. The agency does not believe that sanctions against Russia will soon be lifted. They said that it is much more likely to be the introduction of regular restrictions against our country. Russian companies still can not refinance their loans in the West and forced to pay the debts, which have doubled due to the devaluation of the ruble. In addition, the country’s inflation accelerated.

The Economist Mikhail Delyagin believes that the macroeconomic prerequisites for the downgrade really is.

– However, it is unclear why the decision was made so quickly – says Delyagin. – Rating agencies are working on schedule and Russian rating revision was to be held in the second quarter, about the month of April. The fact that they have decided to urgently review rating in February, said that it was that of the Minsk talks.

Financial analyst Vyacheslav Putilov, believes that a downgrade of Russia – it is a way of political pressure.

– Three agencies has been working for almost a hundred years, they have accumulated a wealth of experience working there really are professionals. They deserve their place in the market experts whose opinion worth listening to, another thing is that you can not use these ratings for political purposes – said Putilov. – Downgrade to a level increases the cost of borrowing for Russia as a whole, for private companies – Putilov. – The level of risk, which reflects the rating, it barrage for institutional investors. Large corporations in making decisions about investing money are guided by these ratings. If they see a garbage assessment, then simply do not consider the issue of investment. And no one will understand, on what grounds was reduced rating.

The downgrade for Russia – a thing unpleasant. However, we have already “junk” label is not possible to borrow money in the West because of the sanctions. It is worth noting that some countries in Europe are living with lower ratings, for example, Greece has preddefolny status of more than one year. And Ireland recently got rid of junk rating, regaining investment status.