Page 76 - RusRPTMar20

Arabia, Japan, and Qatar among minority shareholders. Reuters reminds that in 2018 RDIF assumed that the bank could IPO in the next three years. The bank did not confirm the report to Reuters, commenting that the “[initial public] offering is still being studied and gradually prepared for, along with ongoing corporate governance improvements.” As reported by​ bne IntelliNews,​ another banking IPO is on the horizon, as the Central Bank of Russia (CBR) ​plans to sell the bailed Financial Corporation Otkritie​ (FC Otkritie) in 2021 to either an anchor private investor or at an initial public offering (IPO).
8.4 ​International ratings
Russia - Rating agency
as of January 1, 2020
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
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).
Standard & Poor’s believes that selling the stake in Russia’s largest bank Sberbank​ owned by the Central Bank of Russia (CBR) to the government, financed by tapping the National Welfare Fund (NWF), could lower the trustinthefiscaldiscipline​.Asreportedby​bneIntelliNews,​ thedealwould allow to ​increase the spending for the Finance Ministry and bypassing strict NWF investment rules​, while showing that the CBR is on board with Kremlin’s pro-growth agenda. “This is a good investment and will allow us through CBR profit to gain additional funds to the federal budget to finance the [social spending] goals of the president [Vladimir Putin],” the Finance Minister Anton Siluanov said in February.
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 no outlook indicated.
Fitch has been a lot more upbeat on Russia and has consistently ranked if with a treble B rating since 2004 of one sort or another, as it take more account of Russia rock solid fundamentals – the low external debt and large currency reserves. The lowest rating it had was CCC in August 2008 following the currency meltdown. The highest rating was Baa1 in March 2013 thanks to the
76​ RUSSIA Country Report​ March 2020 ​ ​www.intellinews.com