The international credit rating agency Fitch has given Russia the lowest possible investment grade, a BBB-, Rosbalt reported. Fitch also gave Russia a negative growth outlook.
“In line with the updated guidance contained in Fitch’s revised Sovereign Rating Criteria dated July 18, 2016, Russia’s credit profile does not support a notching up… This reflects Fitch’s view that neither of the two key factors cited in the criteria that support upward notching of the LTLC IDR [long-term local currency issuer default ratings] are present for Russia. Those two key factors are: (i) strong public finance fundamentals relative to external finance fundamentals; and (ii) previous preferential treatment of LC creditors relative to FC creditors,” Fitch’s press release stated.
Turkey, Indonesia, India, Uruguay and South Africa also have BBB- ratings.
Moody’s, another credit rating agency, recently estimated the credit worthiness of Russia at “Ba1” with a negative outlook. Standard and Poor’s gave Russia a “BB+” foreign currency and “BBB-” local currency ratings, also with a negative outlook.