The crisis of the Russian economy has an impact on the country’s creditworthiness. With the devaluation of the ruble exchange rate collapses – and more gradations are possible
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 borrower’s ailing country to BB + from BBB- previously. Russia’s government bonds are therefore considered highly speculative because they involve a relatively high probability of not being served by the state. Thus Russia lost the key for investors investment status.
The Russian government has lost in its monetary policy flexibility, founded the agency her crotch. The growth prospects have deteriorated. The outlook for the further development of Russia was also judged to be negative, thus further gradations are possible. Russia threatens this year because of Western sanctions and the oil price slump a deep recession.
The guessed by capital flight and the sharp decline in oil prices under pressure Russian ruble responded with heavy losses to the statement. By the S & amp; P decision, demand attract investors who want to keep any government bonds to junk level, or may not, for the Russian market returns and thus reduce by rubles. In the evening had a dollar 68 rubles to be paid – six percent higher than before the announcement of the new ratings. The ruble thus approaches the value it had reached after turmoil in mid-December. Two strong daily losses in a row, the Russian Central Bank had forced the sale of dollar reserves to intervene. S & P based its devaluation with the reduction of financial reserves of Russia
The situation in the Russian banking system is deteriorating, with which the monetary policy of the central bank to come across boundaries, Mr S &. P. This stand because of the inflationary devaluation of the ruble difficult choices because they also had to support economic growth. The money guardian had raised interest rates in December by 6.5 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
In the system of S &. P indicates BB + to BBB- as a poorer ability to pay. Russia is now at the same level, such as Bulgaria and Indonesia. The top grade is AAA, with the S & P currently assessed including Germany. Under the current rating from the rating agencies Moody’s and Fitch Russia still possesses the “adequate ability” to meet its obligations. Tim Ash, economist at Standard Bank Group, said the economic side of Bloomberg , he expects that Moody’s and Fitch step of S &. P will follow soon