Ratings agency Standard Poors has raised Russia’s short-term foreign currency credit rating to ‘A-2’ from ‘A-3’ with a stable outlook, the agency said on Wednesday.
SP also affirmed its ‘BBB’ long-term foreign currency sovereign credit rating and its ‘BBB+/A-2’ long- and short-term local currency sovereign credit ratings on Russia.
“We affirmed the ratings because of the Russian government’s slight net asset position, which reflects previous fiscal surpluses and currently moderate deficits, as well as the economy’s slight net external asset position, with liquid external assets exceeding the economy’s gross external debt,” Standard Poor’s credit analyst Kai Stukenbrock said.
“The ratings on Russia remain constrained by structural weaknesses in Russia’s economy – in particular strong dependence on hydrocarbons and other commodities – and by weak political and economic institutions that impede the economy’s competitiveness, leading to a weak investment climate and business environment,” SP said in a statement.