Fitch Сonfirms Russia's Sovereign Rating at "BBB-"
OREANDA-NEWS International rating Agency Fitch Ratings confirmed Russia's investment rating at BBB-with a positive outlook. This was reported on the Agency's website. This is an investment grade rating indicating good creditworthiness.
"The ratings of Russia balance between a very strong sovereign balance sheet, robust external finances and a credible macroeconomic policy against the background of weaker growth prospects, high commodity dependence, weak governance, and geopolitical tensions," — said in the message.
As noted, such a rating of Russia is kept since 2017 and is at the same level with Cyprus, Hungary, Romania, India and Uruguay. As the Agency notes, the sanctions risks are reduced by one step. At the same time, analysts predict that Russia's double surplus, low national debt and large foreign exchange reserves will allow the country's economy to resist new sanctions.
BBB ratings mean low credit risk expectations and indicate an adequate ability to repay financial liabilities. At the same time, negative changes in circumstances and economic conditions are expected to reduce this ability.
The Agency specified that a positive forecast is given due to the strengthening of the country's political situation.
This policy is more resistant to "shocks". Despite sanctions and weak investor interest in emerging market assets in 2018, Russia has maintained macroeconomic and financial stability, Fitch notes. At the same time, the Agency reports that the risk of new US sanctions against Russia is still high.
In February, Moody's upgraded Russia's sovereign rating from Ba1 (non-investment level) to Baa3 (lower investment level). According to analysts, the country's economic policy has strengthened public finances and external indicators, as well as reduced vulnerability to external influences, in particular, sanctions.
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