Moody’s affirmed the “garbage” rating of Russia – RBC

Photo: Mark Lennihan / AP / dapd

Moody’s affirmed the sovereign rating of Russia on the Ba1 level, according to a press release of the rating agency

Moody’s has kept the rating of Russia at the level of Ba1, which is considered garbage. Forecast – “negative.” The decision not to revise it in the direction of experts Moody’s downgrade was explained by the fact that the Russian economy has demonstrated resilience to the fall in oil prices at the beginning of the year, as well as budget adjustments.

The positively affected by the fact that the annual rate of inflation decreased to 7.3% in March, compared with 12.9% in the last year. In Moody’s suggested that by the end of the year inflation will be approximately at the same level as the end of 2017 the rise in prices may be reduced to 5% on an annualized basis.

At the same time the forecast is saved as a “negative” because experts considered the slow introduction of measures that would have responded to the slow pace of economic development. In Moody’s pointed out that the elections in the next two years are placed conducting unpopular reforms.

The upgrade is possible in case of declaration of a clear and justified economic program for the medium term, providing including withdrawal from dependence on oil and gas sector.

At the end of February 2015 Moody’s downgraded the sovereign credit rating of Russia to Ba1 with a negative outlook, this level is considered “garbage”. March 5 rating was put on review for possible reductions.