Moody’s cuts Russia bonds’ to one notch above junk, to revise rating

MOSCOW, Jan 19 (PRIME) -- International rating agency Moody’s has reduced Russia’s state bonds rating to Baa3, one notch above the junk level, and put the rating for a possible downgrade, the agency said in a statement on January 17.

“As evidenced by the recent further steep falls in oil prices and the exchange rate, these shocks have materialized. According to Moody's, the severe – and likely to be sustained – oil price shock, alongside Russian borrowers' highly restricted international market access due to ongoing sanctions, is undermining economic fundamentals and increasing financial stresses on both the public and private sectors,” the agency said.

According to Moody’s, Russia’s real GDP will contract 5.5% in 2015 and 3% in 2016.

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