S&P holds Russia's BBB rating steady

Jun 28th, 2013 | By | Category: Featured

Ratings agency Standard & Poor's (S&P) has held Russia's investment rating steady at BBB.

The decision will come as something of a blow to the government, viagra 60mg which was hoping for its first upgrade in five years before potentially launching a $7 billion bond sale.

However, more about the agency opted to keep the rating at the second-lowest level of investment grade. The decision was influenced by the budget's ongoing reliance on oil revenue, visit this which offset the robust state of Russia's finances.

Kai Stukenbrock and other S&P analysts said in a statement from Frankfurt: “The ratings remain constrained by structural weaknesses in Russia's economy, in particular the strong dependence on hydrocarbons and other commodities.

“Further constraints are the weak political and economic institutions that impede the economy's competitiveness, investment climate, and business environment.”

Russia is still working towards a target of a A- rating by 2016, despite the setback from the latest news. By 2020 the country aims to have been upgraded further to A, according to a government plan.

Fitch Ratings agency gives Russia the same rating at the moment. However, it has said that it the country could see a positive change to this is it continues with “more reforms” to improve its governance and business climate. Steps to strengthen its financial industry were also flagged up as likely to be beneficial.

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