Page 84 - RusRPTSept19

8.4 International ratings
Russia - Rating agency
as of Aug 10, 2018
last change
Moodys (USD rating)
Baa3 (S)
25/1/18
Fitch (USD rating)
BBB (S)
09/08/16
S&P
BBB- (S)
17/3/17
Global rating agency Fitch upgraded Russia’s investment grade rating on Friday to ‘BBB’ from ‘BBB-‘ returning Russia to its pre-2014 rating and underscoring the ongoing easing of tensions with the west as well as Russia’s improving economy.
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 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 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
The latest US sanctions against Russia that limit the buying of Russian sovereign debt on the primary market are not only neutral for Russian sovereign debt market, but could actually support the domestic federal OFZ bonds, analysts told Reuters on August 5.
As reported by bne IntelliNews, the US has enacted a second round of
84 RUSSIA Country Report September 2019 www.intellinews.com