Monday, January 31, 2005
S&P GIVES RUSSIA INVESTMENT GRADE STATUS
MOSCOW, January 31 (RIA Novosti) - The Standard & Poor's international rating agency raised the Russian economy from the BB+ to the BBB- investment grade. The agency published information to this effect on its official Internet site.
The agency also raised Russia's short-term foreign currency rating from the B to the A-3 level, its long-term national currency rating from BBB- to BBB, and its rating by the national scale from ruAA+ to ruAAA, with the rating forecast remaining stable. The agency points out that Russia is the eleventh state now whose rating was raised by it from speculative to investment grade.
Helena Hessel, the agency's analyst, explained that the decision to revise the rating reflected major improvements in the country's debt level and its stock market liquidity abroad. In her opinion, these improvements are so substantial that they outweigh the serious and growing political risk which continues to be the main restraint on Russia's ratings.
In Helena Hessel's opinion, the fact that the Russian government has become a purely external creditor by the end of 2004 is a major reason for revising the rating in the context of [the country's] lasting political and structural problems. Besides, financial flexibility demonstrated by the government means more than other problems.
The agency also raised Russia's short-term foreign currency rating from the B to the A-3 level, its long-term national currency rating from BBB- to BBB, and its rating by the national scale from ruAA+ to ruAAA, with the rating forecast remaining stable. The agency points out that Russia is the eleventh state now whose rating was raised by it from speculative to investment grade.
Helena Hessel, the agency's analyst, explained that the decision to revise the rating reflected major improvements in the country's debt level and its stock market liquidity abroad. In her opinion, these improvements are so substantial that they outweigh the serious and growing political risk which continues to be the main restraint on Russia's ratings.
In Helena Hessel's opinion, the fact that the Russian government has become a purely external creditor by the end of 2004 is a major reason for revising the rating in the context of [the country's] lasting political and structural problems. Besides, financial flexibility demonstrated by the government means more than other problems.
# posted by Deval : 8:35 AM
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