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agreements, thus giving the upper hand to big companies with good access to financing . Sources of the daily and minority shareholders of the Samolet group see the placement as a "technical decision" allowing the most flexibility in terms of financing sources. Samolet is one of the largest developers in the Moscow regions with a portfolio of over 8mn square meters. Its main shareholders are Mikhail Kenin (44%, also a minority shareholder in Russian Aquaculture ), Optimus Prime of Pavel Golubkov (44%), as well as minority shareholders Igor Evtushevsky and Invest AG. According to Vedomosti, co-owner of several companies of the Samolet Group is the brother of the governor of the Moscow Region Maxim Vorobyev.
8.4 International ratings
Standard & Poor's has affirmed the 'BBB-/A-3' foreign currency long- and short-term sovereign credit ratings on Russia, as well as its 'BBB/A-2' local currency long- and short-term sovereign credit ratings with a Stable outlook, the agency said on July 20.
"We consider that Russia's solid external and public balance sheets, coupled with a flexible exchange rate and prudent fiscal framework, should enable its economy to absorb shocks from possible new international sanctions," S&P argues.
In January-June 2018 the federal budget posted a solid surplus , but the finance ministry has previously firmly stood by the "budget rule" that caps the spending of oil and gas revenues at the $40 per barrel oil reference price.
This is noted by S&P which sees the backbone of Russia's rating as its commitment to conservative macroeconomic management, "formidable" net external asset position, low government debt, and "considerable" monetary flexibility.
"The stable outlook balances the risks emanating from the renewed escalation of geopolitical tensions against the potential for further strengthening of Russia's public and external finances," according to S&P.
The agency said that it could take a positive rating action on Russia in the next 24 months should its economic recovery gather momentum and GDP per capita trend growth reach "rates comparable with countries at similar levels of development".
This, however, seems unlikely, as a GDP growth slowdown is expected by the government in 2019 due to the recently passed VAT rate hike to 20%.
Other positive factors that could trigger positive rating action are "faster-than-expected fiscal consolidation, as a result of sustained commitment to fiscal discipline," and "effective measures to address long-term fiscal pressures from an ageing population could also put upward pressure on the ratings."
The Kremlin is currently grappling with the largely unpopular pension reform that takes the long-postponed measure of hiking the retirement age, but the likely pushback and almost unequivocal disapproval among regular Russians could have the authorities scale the reform back.
"We could take a negative rating action should geopolitical events result in foreign governments introducing materially tighter sanctions on Russia, for example, on large state-owned energy companies," S&P warns.
55 RUSSIA Country Report August 2018 www.intellinews.com