Friday, January 9, 2015

Fitch lowered the sovereign rating of Russia to “BBB-” – Les Echos (Blog)

PARIS, Jan. 9 (Reuters) – Fitch Ratings said it had downgraded the sovereign rating of Russia from BBB to BBB-, while maintaining a negative outlook, indicating a further deterioration is not excluded.

“The economic outlook for Russia deteriorated significantly since mid-2014 as a result of falling oil prices and the ruble, combined with the sharp rise in interest rates,” wrote the rating agency.

“Western sanctions imposed since March 2014 continue to weigh on the economy by blocking access of banks and Russian companies to foreign capital markets,” she added .

Following growth of only 0.6% in 2014, Fitch now expects a contraction of the economy by 4% in 2015, instead of a contraction of 1.5% previously The sharp drop in investment and consumption should be only partially offset by improved trade balance due to the fall in imports, said Fitch.

“The return to growth in 2017 could expect “she said.

For 2015, Fitch is based on an average oil price of 70 dollars a barrel, down sharply compared to $ 100 on which the agency based its forecast in July 2014 .

Russia is rated “BBB-” by Standard & amp; Poor’s, a note was placed on negative watch late December. It is denoted Baa2 by Moody’s with a negative outlook

Text Fitch in English.! Http://bit.ly/1BPSiJM (Juliette Rouillon for the French service)

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