S&P changes Russia's outlook from Negative to Stable.

By bne IntelliNews December 22, 2009
International rating agency Standard & Poor's changed the outlook on Russia 's credit ratings from Negative to Stable. At the same time sovereign long and short term credit ratings in foreign currency were affirmed at BBB/A3 and in national currency at BBB+/A2. Agency believes that budget and asset balance indicators are going to improve as a result of stabilising trade and government's renewed commitment to cutting the budget deficit in the coming years. S&P's expects budget to outperform its deficit targets (8.3% of GDP in 2009, 7.5% in 2010 and 4.3% in 2011) due to higher than expected oil prices and given that oil price remains over USD 60 per barrel, agency sees a budget surplus in 2012 already, as well as reserves recovering to the 2008 levels. On average, S&P's expects GDP growth to amount to 3.5% in 2010-2012 vs. 7% pre-crisis growth. 

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