UPDATE: Moody’s changes outlook for Russian state bonds to stable

(Adds comments by finance minister in last two paragraphs)

MOSCOW, Dec 4 (PRIME) -- International rating agency Moody’s has revised its outlook for Russian government bonds to stable from negative and affirmed their rating at Ba1, the agency said late Thursday.

The stabilization of Russia’s external finances, resulting from a macroeconomic adjustment that has helped to mitigate the effect of the fall in oil prices on official FX reserves is one of the key drivers for the decision to change the rating outlook, Moody’s said.

“The diminished likelihood of the Russian economy or finances facing a further intense shock in the next 12–18 months, such as from additional international sanctions given some easing of the conflict in eastern Ukraine,” the agency said.

Finance Minister Anton Siluanov said Friday that the outlook’s improvement by Moody’s indicated that foreign agency accepts Russia’s macroeconomic policy. The Russian economy has significantly adapted to new external conditions, he said.

“A reduction of a budget deficit seen unstable in the long term and a switch to a stable economic growth should be the next step. These are necessary conditions for Russia to return to the group of countries with an investment rating,” Siluanov said.

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