Page 77 - RusRPTMar20

economic rebound that year.
Standard & Poor’s (S&P) rates both Russia’s foreign debt at BBB-​ with stable outlook and the local debt at BBB.
S&P has also been fairly consistent on Russia’s rating. Its lowest grade was BB+ (negative) awarded in January 2015. The highest was BBB awarded in December 2008.
8.5 ​Fixed income
Russian fixed income outperformed across asset classes in 2019. ​A combination of high real rates, a conservative central bank, and low financing needs was attractive for fixed income investors. As the risk of additional sanctions seemed to recede last year and the measures imposed in August 2019 were narrowly defined, Russian markets continued to attract sizable inflows. Primary market sanctions on local debt will have limited direct impact on asset managers. Recent demand for Russian OFZ bonds has been so strong that primary auctions at times even traded at a discount to the secondary market—a rare phenomenon. Sanctions on the secondary OFZ market, in contrast, would have a meaningful impact—not just in the US but around the world, where prudent risk management will likely lead most financial institutions to comply with US sanctions.
77​ RUSSIA Country Report​ March 2020 ​ ​www.intellinews.com