S&P kept the sovereign credit rating of Russia to BB+, which according to scale of rating agencies is considered to be the so-called junk or non-investment level. However, the rating Outlook has been improved from stable to negative.
In a press release, the Agency notes that external risks have substantially decreased. The Agency expects the Russian economy and politics will continue to adapt to low oil prices. S&P forecasts that net capital outflow from Russia in 2016 will be reduced to $40 billion (compared to $58 billion in 2015).
S&P keeps Russia’s credit rating below investment grade from January 2015. Finance Minister Anton Siluanov, commenting on the decision of S&P, noted that the improvement of the forecast of Russia’s sovereign rating was the first positive assessment by international rating agencies since September 2010. In his opinion, the Decision reflects “the objective process of completing the adaptation of Russian economy to changing external conditions”.
As stated by the official representative of the Ministry of economic development, “reason to raise the sovereign credit rating of Russia is enough.” According to him, investors do not pay attention to the ratings of S&P and Moody’s, in assessing Russia as a country with an investment rating, based on the quotations and the dynamics of Russian Eurobonds.
On the eve of the ten surveyed economists expected that the Agency will maintain Russia’s rating at the same level. Three of them admitted that the most that you can expect an increase in the forecast.
The credit rating of Russia is estimated at below investment grade by two of the three largest rating agencies — in addition to S&P, this is Moody’s (Ba1). Russia’s credit rating scale Fitch is BBB- (on the verge of “junk”).