S&P affirms Russia’s ‘BBB-’ rating with stable outlook

TASS Russian News Agency | Mar 27, 2020 at 6:54 AM

MOSCOW, March 27. /TASS/. Standard & Poor's (S&P) global rating agency has affirmed its 'BBB-/A-3' long- and short-term foreign currency sovereign credit ratings on Russia, as well as its 'BBB/A-2' long- and short-term local currency sovereign credit ratings, S&P said in a press release. The outlook is stable.

The agency materially lowered its oil price assumptions for 2020 earlier following the failed OPEC+ talks on crude oil reduction of 1.5 mln barrels per day to address an expected significant drop in global demand "partly due to the spread of the coronavirus," the press release said.

"We anticipate a recovery in both GDP and oil demand through the second half of 2020 and into 2021 as the most severe impacts from the coronavirus outbreak moderate," S&P analysts noted.

Russia's strong policy framework, including a flexible exchange rate and the stringent fiscal rule, amid solid external and public balance sheets, should enable its economy to absorb these shocks, the agency added.