Fitch affirms Russia’s credit rating one step above “junk”

International rating Agency Fitch confirmed long-term Issuer default rating (IDR) of Russia in national and foreign currencies at investment level “BBB-” with “stable” Outlook. This follows from a press release published on the official website of the organization.

According to the Agency, the risks of lowering and raising of the rating in relation to Russia are currently balanced.

“Russia has carried out a consistent and credible policy response to a sharp fall in oil prices. A flexible exchange rate, strong commitment to inflation targeting, fiscal consolidation and financial sector support has helped to keep reliable external and budget balances,” — said the analysts of the international Agency.

The level of inflation in Russia, according to experts of the organization will reach 4% by mid-2017. The Federal budget deficit is expected to be 2.4% of GDP in 2017 and 1.4% of GDP in the next 2018 from 3.4% of GDP in 2016 against the background of growing revenues from the hydrocarbon sector and the freezing of expenditures.

Note updated.