"Standard&Poor's" raised Russia’s sovereign credit rating

Baku. 24 February. REPORT.AZ/ Standard & Poor’s Global Ratings agency has raised Russia’s long-term and short-term sovereign credit rating to BBB-/A-3, while Fitch has reaffirmed the country’s investment grade level with a positive outlook.

Russia’s rating has been raised from a speculative BB+ to investment grade BBB- by S&P’s Global Ratings agency, which also lowered the outlook on the Russian economy from positive to stable. The Fitch Ratings agency, however, has increased its outlook to positive, reaffirming Russia’ investment grade.

“The upgrade reflects the track record of prudent policy response that has allowed the Russian economy to adjust to lower commodity prices and international sanctions,” S&P said in a statement.

“The Positive Outlook reflects continued progress in strengthening the economic policy framework underpinned by a more flexible exchange rate, a strong commitment to inflation-targeting and a prudent fiscal strategy,” said Fitch. “This policy mix is contributing to improved macroeconomic stability and, together with robust external and fiscal balance sheets, increases the economy's resilience to shocks.”

Notably, after 2014 crisis S&P" and "Moody's have downgraded Russia's independent credit rating to undesirable level. Only Fitch kept Russia’s credit rating stable. Analysts say the decision to increase sovereign credit rating will increase Foreign Direct investment (FDI) to Russia and reduce its debt.