Fitch noted partial return of competitiveness of Russia – RBC

The international rating agency Fitch on Friday, July 3, has kept Russia’s investment rating at the same level – «BBB-» with the “negative” outlook. This is stated on the agency’s website.

The report stresses that Russia’s rating at «BBB-» level is a reflection of the positive trade balance and low external borrowing needs on the one hand and structural deficiencies (commodity dependence and risk management ), the strong volatility of growth and geopolitical tensions – on the other.

The agency’s analysts emphasize that Russia partially regained their competitiveness, but the medium-term growth prospects of the economy are the lowest among the major emerging markets. According to analysts Agency, in 2015 the Russian economy will shrink by 3.5%. In 2016, Fitch forecasts the growth of Russia’s GDP by 1%.

In early January, Fitch downgraded Russia’s credit rating from BBB to BBB- with a negative outlook. In the reasoning for his actions Fitch pointed to factors such as the sharp drop in the ruble and oil prices, as well as a sharp rise in the key rate to 17%. The agency notes that its negative impact on the Russian economy continues to maintain Western sanctions, due to which Russian banks and state corporations are deprived of access to external capital markets.

In April this year, Finance Minister Anton Siluanov said that Fitch has postponed consideration of the rating actions in respect of the Russian Federation. According to him, Fitch analysts like to look deeper into the situation in the economy.

Fitch decision coincided with the expectations of the Russian Ministry of Finance. “We do not expect the revision,” – he said this week the head of department Anton Siluanov, when asked about a possible change in the sovereign rating of the country. “All right, so we expected,” – said late on Friday the director of the department of state debt and state financial assets Finance Konstantin Vyshkovsky (quoted by TASS).

As for other agencies, the Moody’s downgraded the rating of Russia at the end of February to Ba1 with a negative outlook, which is considered “garbage.” A month before his rating to below investment grade (BB +) downgraded agency Standard & amp; Poor’s. Later, S & amp; P retained the rating of Russia at this level after seeing the prospects of weakening anti-Russian sanctions.