Fitch estimates that the low turnout at the recent September 18 parliamentary elections associated with the “frustration of the population in the politics of budget consolidation, which was reflected in the decline in real wages and pensions, as well as the sequestration of unprotected items of budget expenditures and cuts in subsidies.
In published on the website of Fitch rating’s comments it is noted that the fate of sovereign credit rating of Russia will not depend on external financial factors and domestic fiscal policy. The Agency may raise Russia’s credit rating if the government can reduce budget expenditures and credible medium-term fiscal policy. But the continued economic recession and the deviation from the declared macro-economic and budgetary goals can play a negative role, noted in comments.
The Agency predicts that by the end of 2016, Russia’s budget deficit will reach 3.9% of GDP, and in 2017 will be reduced to 2.8%.
Now Russia’s rating by Fitch is at BBB – with a negative Outlook, which is considered investment-level. Two other leading rating agencies — Standard and Poor’s and Moody’s — to assess the Russian sovereign rating as “junk”. In mid-September S&P keeps Russia’s rating at the level of below investment grade (BB+), but increased the Outlook from “negative” to “stable”. This, as noted by the Minister of Finance Anton Siluanov, was the first positive assessment against Russia by international rating agencies in 2010.
According to the latest data of the CEC, the turnout of voters in the precinct on September 18 47.8%. While the lowest turnout was recorded in Moscow (35.2%) and Saint Petersburg (32.7 per cent). The head of Mothersurname Valentin Gorbunov said that the low turnout may be related to bad weather.