Cbank says Russia’s rating upgrade by S&P not to influence market

MOSCOW, Mar 15 (PRIME) -- The recent upgrade of Russia’s ratings by global rating agency S&P will not influence the domestic market significantly in the long term, the central bank said in a research note on Thursday.

“S&P’s decision to revise Russia’s sovereign credit rating up to the investment grade has led to a short-term advance in quotations of local financial assets, which was soon offset by a fall in crude prices,” the statement read.

“In the long-term the decision will not influence the Russian market much as it was in line with expectations.”

In February, the agency raised Russia’s long-term and short-term sovereign credit rating to investment grade BBB- from a speculative BB+.

The central bank also said that the ruble’s volatility increased in February due to rising volatility on global markets and decreasing oil prices, which resulted in lower attractiveness of carry trade deals.

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