Fitch affirms Russia’s rating at BBB, outlook stable

MOSCOW, Feb 8 (PRIME) -- International rating agency Fitch Ratings has affirmed Russia's long-term foreign-currency issuer default rating (IDR) at BBB, with a Stable Outlook, the agency said on February 6.

“The Stable Outlook reflects a policy response to both the Covid-19 shock and extreme volatility in oil prices that has helped anchor macroeconomic stability and preserve the strength of the sovereign balance sheets,” the agency said.

A strong commitment to inflation targeting, exchange rate flexibility and a prudent fiscal strategy support Russia's increased resilience to shocks and reduce the impact of oil price volatility on the economy, Fitch said. At the same time, high geopolitical risk and limited structural reform prospects that would lift Russia's trend growth rate continue to constrain the rating.

Fitch forecasts Russia’s GDP growth of 3.0% in 2021 after a contraction by 3.1% in 2020.

Russian Finance Minister Anton Siluanov said that Fitch's decision to confirm Russia's rating is yet another evidence of the successful overcoming of the negative consequences of the coronavirus crisis by the Russian economy.

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