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

MOSCOW, Apr 3 (PRIME) -- International rating agency Fitch Ratings has affirmed Russia’s long-term foreign- and local-currency issuer default ratings (IDRs) at BBB- with a stable outlook, the agency said late on March 31.

Russia’s economic growth is reviving, but will remain weak relative to peers, the agency said. The gross domestic product (GDP) is projected to rise 1.4% in 2017 and 2.2% in 2018 after a 0.2% decline in 2016 due to reduced uncertainty, monetary policy easing, exchange rate stability and a supportive oil price environment.

“The stable outlook reflects Fitch’s assessment that upside and downside risks to the rating are currently balanced,” the agency said.

A rise in geopolitical tensions or imposition of significantly tougher sanctions could trigger negative rating action, Fitch also said.

Finance Minister Anton Siluanov has welcomed Fitch’s decision to affirm Russia’s long-term currency ratings at the investment level.

“The decision by Fitch reflects the agency’s confidence in Russia’s financial stability and success of the Russian government’s measures to adapt the country’s economy to low oil prices,” Siluanov said.

Maintaining responsible fiscal policy in the medium term and carrying out structural reforms aimed at acceleration of the economy growth may help improve Russia’s rating in the future, the minister also said.

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