12:58 25.07.2016

Fitch affirms sovereign rating of Russian in national currency at "BBB-" after review

2 min read
Fitch affirms sovereign rating of Russian in national currency at "BBB-" after review

Fitch Ratings on Friday affirmed the long-term issuer default rating of Russia in national currency, keeping it at the last level of investment rating, "BBB-".

"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 of the LTLC IDR above the LTFC IDR. This reflects Fitch's view that neither of the two key factors cited in the criteria that support upward notching of the LTLC IDR 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," the press release said.

"The issue ratings on Russia's Long-Term senior unsecured Local Currency bonds have also been affirmed at 'BBB-'," Fitch said. The ceiling of the country rating was also set at "BBB-".

The outlook of the long-term ratings is "negative".

Other countries with such ratings include India, Indonesia, Turkey, Uruguay and South Africa.

"The Short-Term Foreign Currency (STFC) IDR has been affirmed at 'F3' and a new Short-Term Local Currency (STLC) IDR of 'F3' has been assigned," the rating agency said.

S&P maintained Russia's rating in foreign currency at the level of "BB+", in national currency - "BBB-" with a "negative" outlook. Moody's estimated the credit worthiness of Russia at "Ba1", also with a "negative" outlook.

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