S&P Ratings has recently announced that it affirmed Russia’s rating at ‘BBB-/A-3’ and said the outlook was ‘stable’.
Key quotes (via Reuters)
- Likelihood of current U.S. government imposing sanctions on secondary market for Russian sovereign bonds remains uncertain.
- Russia’s balance sheets, flexible exchange rate, prudent fiscal framework, should enable it to absorb shocks from possible new sanctions.
- Scenario where U.S. government imposing sanctions on secondary market for Russian sovereign bonds would be disruptive to financial markets.
- Russia’s stable outlook factors in S&P’s assumption of an adequate government policy response in the event of additional sanctions.
- Policymaking will continue focusing on preserving macroeconomic stability.
- Expectation is Russian authorities would focus on containing macroeconomic risks arising out of new sanctions & limiting retaliatory actions.
- Political tensions between U.S. and Russia raise possibility of future sanctions.
- Could take negative rating action in 24 months if geopolitical events result in foreign governments introducing materially tighter sanctions on Russia.
- Russia’s external position remains a credit strength.
- Could also take negative rating action if we saw a risk of a material deterioration in russia’s budgetary trajectory.
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