S&P may raise Russia’s credit rating to investment grade

  • And
  • +A

Next Friday 23 February, which will be in Russia a non-working day, the rating Agency S&P may raise Russia’s credit rating to investment grade. If Russia gets second credit rating of investment level, additional inflow of funds into the country’s debt from funds that track major indices of Eurobonds of emerging markets, could reach several billion dollars.
Although the risk of tougher sanctions against Russia dropped after the publication of softer than expected, the recent report of the U.S. Treasury, the threat of tougher sanctions from the United States continues to persist, especially if the U.S. Congress will continue to insist on the real steps in this direction.
Fitch Ratings, one of the “big three” preserving the credit rating of Russia to investment level, will also announce its decision on Russia’s rating on Friday 23 February. The focus of attention of market participants in the coming week is the publication on Wednesday 21 February the minutes of the last fed meeting amid growing concerns about inflation in the United States. At the last FOMC meeting when Janet Yellen, the us Central Bank, the US has indirectly confirmed is designated in December intention to raise rates three times this year.
Unexpectedly, however, the rising rate of inflation and the expected increase in the deficit, force market participants to revise their forecasts to a more rapid tightening of monetary policy of the Federal reserve. Both of these events emboldened investors, therefore, the MICEX index may reach 2,400 points by the end of next week.
Alexander Grigorenko,
Asset Manager
IR Global Capital