Page 100 - RusRPTFeb21

own wood supplies in its production reaching around 70% in 2019. The share of wood in Segezha’s manufacturing cost structure varies from 36% for sack paper to 59% for sawn timber. It is cheaper for Segezha to produce sack paper than for the majority of its European peers. Segezha also has a cost advantage in sawn timber production (gap of 1.1-1.2x in variable costs vs. Finland and Sweden) and in birch plywood (gap of 1.6-2.0x in variable costs vs. Latvia and Finland).
8.4 ​International ratings
Russia - Rating agency
as of Januaary 1, 2021
last change
Moodys (USD rating)
Baa3 (S)
02/08/19
Fitch (USD rating)
BBB (N)
09/08/19
S&P
BBB- (S)
23/02/18
International rating agency S&P Global Ratings (S&P) has affirmed Russia’s long-term rating in foreign currency at an investment level of BBB-, ​the agency said in a statement on January 16. The rating the in national currency was affirmed at BBB/A-2. The outlook for both ratings is Stable. Russian Finance Minister Anton Siluanov said that the decision to retain the long-term credit rating at BBB- can be seen as confirmation of effectiveness of the government measures to soften the 2020 crisis. "This is particularly important in a situation when more than half of the countries in the world faced a downgrade last year or a change of the outlook to Negative by at least one of the big three agencies," Siluanov said.
Russia’s credit ratings have been improving ​and all three ratings agencies have returned Russia to “investment grade” status (BBB- or more by S&P and Fitch, Baa3 by Moody’s).
Moody’s rates Russia at Baa3​ with stable outlook on both its foreign and local currency debt.
Moody’s last upgraded Russia from Ba1 (Positive) in January 2018 as the economy started to emerge from several years of recession. The lowest rating the country had was B3 in August 2008 following the collapse of the ruble that year and technical default on the GKO state treasury bills. The highest the country has scored was Baa1 in March 2013 as economy bounced back from the 2008 crisis.
Fitch rates Ukraine at BBB-​ on both its foreign and local currency debt with
100 ​RUSSIA Country Report​ February 2021 www.intellinews.com