#AceFinanceNews – LONDON – April 25 – International rating agency S&P has downgraded Russia’s sovereign rating from BBB to BBB- with ‘negative’ outlook.
S&P has explained downgrading of Russia’s sovereign credit rating from BBB to BBB – with capital flight from the country in the first quarter of 2014 and reduced capabilities to attract funding on foreign financial markets due to current Ukrainian political crisis, the agency stated.
“We believe that the complex geopolitical situation between Russia and Ukraine may lead to additional substantial outflow of both foreign and local capital of the Russian economy, undermining the already weak growth prospects,” S&P said.
#AceFinanceNews – MOSCOW – March 22. – Russian President Vladimir Putin’s spokesman Dmitry Peskov has said the downgrade of Russia’s rating outlook by the Standard & Poor’s ratings agency was due to a directive rather than objective circumstances.
The downgrade decision “was clearly directive, not objective,” Peskov told journalists Friday, adding that such forecasts reduce the degree of credibility of such agencies.
On March 20, S&P said it revised its outlook on the Russian Federation to negative from stable. The organization also affirmed its ‘BBB/A-2’ foreign currency and ‘BBB+/A-2’ local currency long- and short-term sovereign credit ratings on the country.
“The outlook revision reflects our view of the material and unanticipated economic and financial consequences that EU and US sanctions could have on Russia’s creditworthiness following Russia’s incorporation of Crimea, which the international community currently considers legally to be a part of Ukraine,” S&P said Thursday.
Fitch Ratings on Thursday revised the outlook on Russia’s long-term foreign and local currency Issuer Default Ratings (IDR) to negative from stable and affirmed the IDRs at ‘BBB’.
Ace Related News Reports:
- March 20 – 09.13 GMT – Standard and Poor’s – http://wp.me/pzTwj-2Mf
- March 20 – 11.35 GMT – Fitch – http://wp.me/pzTwj-2Ms
Russian Finance News and Media 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.
#AceFinanceNews – Standard &Poor’s on Thursday revised the outlook for the Russian Federation to negative from stable on rising geopolitical and economic risks.
The rating agency affirmed Russia’s BBB foreign currency rating.
“The outlook revision reflects our view of the material and unanticipated economic and financial consequences that EU and U.S. sanctions could have on Russia’s creditworthiness following Russia’s incorporation of Crimea, which the international community currently considers legally to be a part of Ukraine,” S&P said in a statement.
A short-while after Moody’s followed suit.
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