Moody’s downgraded the ratings of 13 Russian cities and regions – BBC Russian

Moody's downgraded the ratings of 13 Russian cities and regions – BBC Russian

• February 25, 2015

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Moody’s believes that in 2015 the Russian economy expects a deep recession, and the economic downturn will continue in 2016

The international rating agency Moody’s downgraded the rating of 13 Russian cities and regions due to lower government bond rating of the country to “junk level” last week.

The revision of ratings affected in a negative direction Moscow, St. Petersburg, Volgograd, Khanty-Mansi Autonomous District, Komi Republic, Krasnodar and Krasnodar himself, Mordovia, Krasnoyarsk Territory, as well as the Belgorod, Vologda, Nizhny Novgorod and Samara region.

The agency left at the same level ratings of the Moscow region, Chuvashia, and the Omsk region of Omsk.

Earlier, the rating agency S & amp; P also downgraded Russia’s rating to speculative grade “BB +” – for the first time since 2005.

“Trash Zone”

Last week, Moody’s lowered the rating of government bonds Russia to the level of Baa3 to Ba1 with a negative outlook.

Thus, Russian bonds were in the “junk” zone, where fall speculative paper, not worth the investment.

Moody’s believes that in 2015 the Russian economy expects a deep recession, the recession will continue in 2016.

Moody’s – the second of the three major agencies downgraded the sovereign credit rating of Russia to “junk” level.

January 26 rating agency S & amp; P also downgraded Russia’s rating to speculative grade “BB +” – for the first time since 2005.

The only agency that still holds Russian Government bonds in the investment area remains Fitch. However, it is 10 January downgraded Russia from “BBB” to “BBB-”, putting the Russian papers on the lowest level of investment attractiveness to “junk”.