Page 90 - RusRPTJun20

business for Yandex, hired investment banks late last year to prepare for its long-awaited initial public offering in the first half of 2020. But with Russia largely on lockdown since late March due to the coronavirus outbreak, the taxi business has been hit hard, Yandex’s Tigran Khudaverdyan told the Bell, with a recovery not expected in the next two quarters at least.
Russian hydropower major ​RusHydro​ has started an open market placement of 7bn new shares at RUB1 per share to be valid until May 2022​, the company announced. This makes the second stage of the 14bn new shares placement approved in 2018 to finance the project of the transmission line at Chukotka (to Bilibinskaya nuclear power plant (NPP)). "As the placement price of RUB1 per share is far higher than the market price is far – 54% above – we will see no demand from the open market," BCS Global Markets commented on May 28, while adding that the placement size is minimal (1.5% of charter capital).
8.4 ​International ratings
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
90​ RUSSIA Country Report​ June 2020 ​ ​www.intellinews.com
The CBR said on May8 that it will commence 1m and 1y repo operations
to tackle the uneven spread of liquidity in the banking system. The interest rate on the one year repo, the main instrument banks use to improve their liquidity