S&P confirms Russia’s sovereign rating at BB+, outlook negative

MOSCOW, Mar 21 (PRIME) -- Rating agency Standard &Poor’s (S&P) has confirmed Russia’s long-term sovereign foreign currency credit rating at BB+, the highest grade of the speculative range, and kept a negative outlook, according to a statement of the agency seen by PRIME on March 18.

S&P also confirmed Russia’s short-term credit rating in foreign currencies at B. The long-term and short-term ratings in the national currency were kept at BBB– and A–3, also with a negative outlook.

The national-scale sovereign rating remained at ruAAA.

S&P expect Russia’s gross domestic product (GDP) to decrease 1.4% in 2016, while the economy will recover to moderate growth in 2017. The average real GDP will rise by 0.5% in 2016–2019.

Oil prices are expected to be U.S. $40 per barrel on average in 2016, $45 in 2017 and $50 in 2018. Sanctions on Russia will remain if the Ukrainian conflict is not solved, the agency said.

Budget deficit is expected at about 3.5% of GDP in 2016–2019.

End