Russia’s ratings: The fall in oil prices and the overall state of the country’s economy has prompted the Moody’s international rating agency to give Russian notice that it is reviewing the rating of its government bonds.”In the course of the review Moody’s will assess the degree of influence of a further sharp fall in oil prices, – which we expect to remain low for a few years – Russia’s economic performance and the balance of payments, including a lack of financing options for state obligations over the coming years, ” it said in statement released at the end of last week.
The agency is questioning Russian government forecasts that the average price of oil will stabilise at $40 barrel this year before rising to $45 in 2017. The review will evaluate the government’s ability to mitigate the impact on Russia’s creditworthiness, as well as the clarity, scope and ambition of the government’s plans in relation to the scale of the task.
Moody’s to review Russia’s ratings
Source: Interfax