Moody’s holds Russian bond rating at Ba1 as economy shows resilience

Moody's Russia

Russian bond rating: Rappler

The international credit rating agency¬†Moody’s Investors Service has confirmed Russia’s government bond and issuer ratings at a negative Ba1. In a statement issued late last week, it explained that its decision to uphold the findings¬†of the review that it initiated earlier this year was based on the resilience that the Russian economy had displayed in the face of the renewed drop in oil prices early this year thanks to an effective blend of macro policy responses; and that Moscow’s ongoing fiscal adjustments appeared to be sufficient to reduce the 2016-18 deficits to a level that meant it could be financed in the domestic capital markets and through fiscal reserve drawdowns.
However, its statement also pointed out the negative outlook reflected the likely further erosion of the government’s fiscal savings in the context of Moody’s medium-term projections for oil prices. A set of policies that would address the economy’s low growth potential had additionally been slow to emerge, while the election calendar over the next two years was likely to interfere with the implementation of politically unpopular reforms that could achieve a more fundamental budget consolidation.

Source: moodys