Transfer international rating Agency Fitch consider rating actions concerning the Russian Federation due to his intention to look more deeply at the situation in the economy of the country. This was stated by Minister of Finance Anton Siluanov, reports Interfax.
«Today we met with the rating agencies. I personally met with Fitch. They still don’t change the rating, said he postponed the consideration of the Committee of the situation in Russia will be even more deeply to study the situation in the economy and Finance. In any case, any decision to change the rating have been taken,» — said Siluanov.
He said that the representatives of the Ministry of Finance has planned in Washington meeting with the «big three» rating agencies. Meeting with representatives of Standard & Poor’s (s&P) and Fitch have already taken place, a meeting with representatives of Moody’s takes place on Saturday.
Siluanov also said that the situation in the Russian economy allows them to not attribute its sovereign rating to non-investment zone. «We believe that we are now in a situation where we have reason to state that we are in non-investment zone, no,» — said the Minister of Finance journalists (quoted by RIA Novosti).
On Friday, 17 April, S&P and Fitch had to confirm either to change Russia’s sovereign rating.
S&P on Friday confirmed the rating of Russia in foreign currency BB+. Were also confirmed by the long-term and short-term Issuer default ratings (IDRs), as well as credit ratings in national currency. The Outlook on all ratings remains negative, the Agency said. The ratings are supported from the reduction to the fact that the Russian government continues to have a low net debt, and this situation will continue until 2018, said S&P. At the same time to increase the ratings of Russia have not given a relatively weak political institutions, income of the economy and the prospects for economic growth, which hinder economic competitiveness, business and investment. In addition, containment of the ratings affected by structural weaknesses of the Russian economy, which is heavily dependent on hydrocarbons and other commodities. The Agency’s decision coincided with expectations of analysts.
In early January, Fitch downgraded Russia’s credit rating from BBB to BBB — with a negative Outlook. In the grounds for its action, Fitch pointed to factors such as a sharp drop in the ruble and oil prices and a sharp rise in the key rate to 17%. The Agency noted that its negative impact on the Russian economy still retain Western sanctions, Russian banks and the state have no access to external capital markets.
Fitch also noted that he expects a contraction of the Russian economy by 4% (the previous forecast of the Agency talked about reducing by 1.5%). The decline in the economy will be accompanied by a decline in consumer activity and investment. The Agency believed that economic growth in Russia may be terminated by 2017.
After Fitch in late January, Standard & Poor’s downgraded the rating of Russia to speculative grade — level BB+. Its decision, S&P explained the deteriorating situation in the financial sector, higher inflation and a weaker ruble. Analysts predicted that all of these factors have a negative impact on lending to the economy that in the future is likely to undermine economic growth.
Then Russia’s sovereign rating to Ba1 level (also speculative) downgraded and Moody’s. In its report, the Agency’s analysts noted the «very low but increasing» the risk of government decisions that would jeopardize the timely payments on external debt.
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