- The rating agency Standard & amp; Poor’s is the first rating agency Russia’s credit rating to “junk status” and evaluates the credit rating to “BB +” from
- S &. P sees the monetary policy of the Central Bank of Russia at its borders and provides a negative forecast for economic growth.
- The ruble reacted with losses to the message
devaluation to “BB +”
The rating agency Standard & amp. Poor’s (S & P) has downgraded the creditworthiness of Russia to “junk status”. S &. P lowered the grade of the creditworthiness of the economically depressed state of previously “BBB-” to “BB +”
Moscow has lost in its monetary policy flexibility, founded the agency her crotch. The situation in the Russian banking system is deteriorating, with which the monetary policy of the central bank to come across borders, said S & amp; P. This stand because of the inflationary devaluation of the ruble difficult choices because they also had to support economic growth.
The outlook for the further development of Russia was also judged to be negative, thus are more gradations possible.
In early January had already ratings agency Fitch downgraded Russia, but held above the “junk levels”. Even with the rating agency Fitch, the country currently
slump of the ruble
does not have “investment status.”
The guessed by capital flight and the sharp decline in oil prices under pressure Russian ruble responded with strong losses to the statement. In the meantime, had more than 68 rubles for one US dollar to be paid – at least five percent more than before the announcement of the new ratings
Sanctions burden Russian economy
The EU and the US has. economic sanctions imposed because of the attitude of Russia in the conflict in Ukraine. In return, Moscow has decided an import ban on food from the west. Russia, which is one of the largest oil and gas producer in the world, also suffers from the extreme decline in oil prices. The Russian state is strongly dependent on the revenue from the export of raw materials. As a result of the current crisis, the price of the ruble fell sharply and the economy declined significantly. This year is threatening a deep recession.
The Russian central bank had raised interest rates in December by 0.75 percentage points to 17 percent in order to make the ruble more attractive and to get inflation under control. However, this increases the cost loans for Russian companies and stifles the economy.