Fitch Upgrades Russia’s Issuer Default Ratings Outlook to Positive

Fitch Upgrades Russia’s Issuer Default Ratings Outlook to Positive
Sputnik/ Vladimir PesnyaBusiness00:42 23.09.2017Get short URL118020

Fitch has upgraded Russian long-term foreign and local currency IDRs from stable to positive.

WASHINGTON (Sputnik) — Fitch upgraded Russia’s long-term foreign and local currency issuer default ratings from stable to positive, citing progress in strengthening the country’s policy framework, the global rating agency said in a statement on Friday.

“Fitch Ratings has revised the outlook on Russia’s Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to Positive from Stable and affirmed the IDRs at ‘BBB-‘,” the statement said.

Russia’s progress in strengthening its policy framework is underpinned by a more flexible exchange rate and a strong commitment to inflation targeting, Fitch said.

The rating agency added that Russia’s recently approved budget rule reflects the country’s commitment to fiscal prudence.

“This policy mix will result in improved macroeconomic stability and, together with robust external and fiscal balance sheets, increases the economy’s resilience to shocks,” Fitch said.

Fitch cited some inflationary risks stemming from exchange rate volatility, domestic demand recovery and food price shocks.

Inflation is expected to average at 4.5 percent in 2018-2019, an unprecedented low for Russia, Fitch added.

Earlier, Standard & Poor’s credit rating agency placed Russian sovereign debt rating on the borderline between “junk” and investment-grade status, affirming it at BB+/BBB-.