#AceFinanceNews – BRITAIN – April 10 – The UK would need longer to recover its triple-A debt rating if Scotland gains independence after a referendum in September, Fitch said on Thursday.
Scottish independence would raise the ratio of the UK’s gross public debt to gross domestic product, Reuters said.
“The UK’s gross debt ratio will need to be lower than its current level and steadily declining before any upgrade back to AAA, a prospect that would be delayed by such a debt shock,” according to the ratings agency.
Telegraph Reported on March 20 – Britain’s public sector net debt will need to fall before the country can regain its top-notch triple-A sovereign debt rating, ratings agency Fitch said on Thursday, a day after finance minister George Osborne’s annual budget http://www.telegraph.co.uk/finance/economics/10712316/UK-not-close-to-regaining-triple-A-rating.html
“The public debt ratio will need to be lower and steadily declining before any upgrade to ‘AAA’. This is unlikely in the near term,” Fitch said in a statement.
Fitch currently rates Britain AA+, one notch below triple-A, with a stable rating.
Government forecasts released showed that Britain’s public sector net debt is expected to rise over the coming years and is not forecast to fall below its current level of around 74.5pc of GDP until the 2018/19 financial year.
It means that only Standard & Poor’s has the UK on the top rating, albeit on “negative outlook”.
#AceFinanceNews – MOSCOW, March 24 – The Fitch international rating agency has downgraded the ratings of nine Russian state-owned companies, including Gazprom and LUKOIL, to negative from stable.
The agency has also revised its outlook to negative from stable on 16 Russian banks, including Sberbank, Rosselkhozbank, Alfa Bank, Gazprombank and Vensheconombank.
“The rating actions follow Fitch’s revision of the Russian Federation’s Outlook to Negative from Stable and the affirmation of its Long-term foreign and local currency Issuer Default Ratings (IDRs) at ‘BBB’ on 21 March 2014,” the agency said in a press release on Monday, March 24.
On March 21, Fitch revised its rating of Russia to negative from stable citing a potential impact of Western sanctions on the economy and business environment in Russia.
Fitch analysts think that the direct effect from the declared sanctions will not be significant, but in the future investors can face new measures such as restrictions on Russian companies’ access to international capital markets.
Russian Finance Sources
#AceFinanceNews – MOSCOW, 21 March. International rating agency Fitch has affirmed long-term issuer default rating (IDR) of Russia in national and foreign currencies from stable to negative, the rating agency said in a statement.
Long-term IDR affirmed at BBB, short-term foreign currency IDR – F3. Country ceiling rating was affirmed at BBB +. The outlook revision reflects the potential impact of sanctions on the economy and the business in Russia, added to Fitch. Russian economic growth slowed in 2013 to 1.3%.
“As banks and investors the US and EU are reluctant to lend to Russia now, the economy may continue to slow its growth,” – said the agency.
According to Fitch analyst, the direct impact of the declared sanctions is not visible, but in the future, investors can expect the new measures, such as restricting access of Russian companies to external capital markets.
“The costs of risk have increased, and the provision of syndicated loans suspended a number of large corporations,” – added the agency.
Another international rating agency Standard & Poor’s has changed the outlook on Russia in national and foreign currencies to negative. Meanwhile, the agency has kept long-term sovereign rating of Russia in foreign currency at BBB and in local currency BBB + http://wp.me/pzTwj-2Mf
The outlook changed to negative from stable due to the increasing geopolitical and economic risks, the agency said.