MOSCOW, Apr 25 (PRIME) -- Rating agency Moody’s has confirmed the sovereign credit rating of Russia at Ba 1 and has kept a negative outlook, the agency said in a statement on April 22.
“The economy has exhibited resilience to the renewed drop in oil prices early this year thanks to an effective blend of macro policy responses,” Moody’s said.
The agency placed the Russian rating on the list for downward revision on March 4.
Russia’s gross domestic product (GDP) will contract 1.5% in 2016. The budget deficit is estimated at 3% of GDP by the end of 2016, Moody’s said.
In 2017, the Russian economy will restart growth and the budget deficit will halve, the agency said.
“The fiscal adjustment underway appears sufficient to reduce the 2016–2018 deficits to a level that can be financed in the domestic capital markets and through fiscal reserve drawdowns,” Moody’s said.
But low oil prices will continue to reduce the government’s fiscal savings, the agency said.
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