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. 

Related Articles

Russias participation in Cyprus bail-out under question.

As Cyprus is trying to come up with new ways to raise EUR 5.8bn needed to secure the financing from ECB, EC, and IMF, Russia's participation in the package is not clear. According to the latest ... more

Fitch: Russian banks risks in Cyprus limited.

Fitch Ratings believes that resolution of the Cyprus crisis with a deposit levy or some other form of burden sharing involving creditors is unlikely to result in material losses for Russian ... more

Sources: Russia could triple oil exports to China.

Russia and China discuss contracts that would triple exports of Siberian oil through various transport corridors, Reuters reports citing unnamed sources in the industry. Rosneft is discussing ... more

Notice: Undefined index: subject_id in /var/www/html/application/controllers/IndexController.php on line 335
Dismiss