Fitch affirms Russia’s rating at BBB-, outlook positive

MOSCOW, Feb 18 (PRIME) -- International rating agency Fitch Ratings has affirmed Russia’s long-term foreign- and local-currency issuer default ratings (IDRs) at BBB- with a positive outlook, the agency said in a press release on February 16.

“The positive outlook reflects continued progress in strengthening the economic policy framework underpinned by a more flexible exchange rate, a strong commitment to inflation- targeting and a prudent fiscal strategy,” the agency said.

This policy has increased the economy’s resilience to shocks and helped preserve macroeconomic and financial stability despite the heightened sanctions’ risk and reduced investor appetite for emerging market assets in 2018, Fitch said.

The agency projects that Russia’s inflation will accelerate to 5.3% in 2019 due to an increase in value-added tax (VAT), the ruble’s depreciation, and higher inflation expectations and will return to the target of 4% by 2020.

Russia’s economic growth is expected to slow to 1.5% in 2019 and accelerate to 1.9% in 2020, Fitch said.

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