Fitch affirms Russia at 'BBB-'

Baku. 16 February. REPORT.AZ/  Fitch Ratings has affirmed Russia's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) at 'BBB-' with a Positive Outlook, Report informs citing the agency.

According to the Fitch Ratings, the Long-Term Foreign-Currency IDR was affirmed at 'BBB-', Short-Term Foreign-Currency IDR - at 'F3'.

Nevertheless, the prospect of harsher additional US sanctions remains high, maintaining risks for sovereign financing flexibility, private sector access to international financing and macroeconomic volatility, as well as weighing on growth prospects.

Average inflation will increase from the historical low of 2.9% in 2018, to 5.3% in 2019 due to a higher VAT rate, the 2018 rouble depreciation and higher inflation expectations. Moreover, Fitch expects GDP growth to slow to 1.5% in 2019.