Fitch affirms Russias rating at BBB, outlook Positive.

By bne IntelliNews September 5, 2011
Fitch Ratings affirmed long-term Russias ratings at BBB, outlook Positive. The affirmation and the Positive outlook reflect strong state balance and potential for lower macro instability and inflation due to a more flexible currency rate. At the same time, the outlook is accounting for structural faults and postponement of toughening the tax and budgetary policies, which increases countrys vulnerability to sharp oil price fluctuations, Fitch notes. Agency sees Russias GDP increasing by 4.2% in 2011, mentioning high unpredicted oil revenues, higher agricultural crops and finally reviving consumption as some of the growth drivers. Economic growth is to decline to 3.6% in 2012-2013 on global slowdown. Fitch notes Russias strong external balance, high Fx/gold reserves, low state debt and net creditor position, while underlining that sufficient structural faults such as unfavourable business environment and low corporate governance quality are holding the ratings back. To remind, last week Standard & Poors affirmed Russias foreign currency long/short term ratings at BBB/A-3 and national currency long/short term rating at BBB+/A-2, outlook Stable.
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