Moody’s increased the rating of Russia to investment
International rating Agency Moody’s believes that if in the near future there will be strengthening of the sanctions regime will not be domestic and geopolitical shocks, the sovereign credit rating of Russia in 2019 will reach investment grade.
In fact, the financial status of Russia as a borrower one of the best in the world. We have already noted the budget surplus, and that Russia’s international reserves comparable to the gross, that is including debt of companies and banks, external debt.
The share of the public sector is 70% and theoretically Russia can replenish the budget at the expense of revenues from privatization. Moody’s, of course, is silent, apparently out of modesty, but the real reason for the possible lifting of the rating, of course, is the rise in oil prices. Likely, the Agency wants to ensure that expensive oil is here to stay. If Moody’s will really improve the rating, you can expect a short-term rise in stock prices and the strengthening of the ruble. Russia outlasted cheap oil may keep and sanctions.
The Director of analytical Department,