S&P upgrades Russia’s rating to positive
International ratings agency S&P has upgraded its outlook on Russia’s sovereign credit rating from “stable” to “positive” and affirmed the country’s long-term foreign currency credit rating at ‘BB+’.
The agency noted that the revised outlook reflects expectations that Russia’s GDP will return to the growth trajectory and the Russian economy will continue to adapt to low oil prices while maintaining a relatively low level of public debt in the period from 2017 to 2020.
The decision by S&P to upgrade its outlook on Russia’s sovereign rating exceeded the expectations of the Russian Ministry of Economic Development and was facilitated by a discussion between ministry officials and S&P analysts concerning a plan for structural changes, Russian Minister of Economic Development Maxim Oreshkin said.
“We had previously held a meeting with S&P analysts at which we told them about our plans, the current economic dynamics, and the government’s forecasts and actions to prepare a plan to boost economic growth rates. This discussion influenced their expectations and contributed to the adoption of a decision on a positive outlook earlier than expected”, Oreshkin said, according to TASS news agency.
Oreshkin added that the finalization of the plan for structural changes and the start of its implementation would be a prerequisite for upgrading the rating to an investment level this year.