Arab Today, arab today moodys cuts russia debt rating 1 notch
Last Updated : GMT 14:27:52
Arab Today, arab today
Arab Today, arab today

Concerns about financial strength

Moody's cuts Russia debt rating 1 notch

Arab Today, arab today

Arab Today, arab today Moody's cuts Russia debt rating 1 notch

A Russian ruble coin in front of the Kremlin in central Moscow
Washington - Arab Today

Moody's cut Russia's credit rating to one step above junk level Friday and warned the country was under review for a further downgrade.
Moody's said that the plunge in oil prices and in the ruble would further erode Russia's economic growth potential and that it had concerns about the government's financial strength.
The grade was cut by one notch to Baa3 from Baa2. Baa3 is the lowest level for "investment grade" sovereign bonds; another cut would take it into "speculative" or junk bond grade.
"The severe -- and likely to be sustained -- oil price shock, alongside Russian borrowers' highly restricted international market access due to ongoing sanctions, is undermining economic fundamentals and increasing financial stresses on both the public and private sectors," Moody's said.
It forecast the Russian economy would contract this year by 5.5 percent and another 3.0 percent in 2016, "bringing real growth over the 10 years through 2018 to virtually zero."
It also cited "nearer-term concerns over the negative impact on the government's financial strength of the erosion in official foreign exchange buffers and fiscal revenues."
"Russia's nominal FX reserves could fall by at least as much this year as they did in 2014, when they declined by around $125 billion," it noted.
"Added to that," Moody's said, "the risk of politically motivated actions which either directly or indirectly raise risks to creditors is rising in the context of current geopolitical tensions."
The agency said it was already embarking on another review which could lead to another rating cut.
It explained that the government's ability to remain financially solid rested on a large number of assumptions, each one of which could deteriorate: the oil price, the longevity of sanctions over Moscow's support for Ukraine rebels, the impact of recession, and the policy response from the government to the challenges.
If oil prices stay low through 2016, it said, the recession will persist for more than two years.
"The loss of investor and consumer confidence would be even more profound, leading to continued capital flight," Moody's said, adding that its review will weigh the options available to the central bank and the government to support the economy in those circumstances.
Source: AFP

 

arabstoday
arabstoday

Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today moodys cuts russia debt rating 1 notch Arab Today, arab today moodys cuts russia debt rating 1 notch

 



Name *

E-mail *

Comment Title*

Comment *

: Characters Left

Mandatory *

Terms of use

Publishing Terms: Not to offend the author, or to persons or sanctities or attacking religions or divine self. And stay away from sectarian and racial incitement and insults.

I agree with the Terms of Use

Security Code*

Arab Today, arab today moodys cuts russia debt rating 1 notch Arab Today, arab today moodys cuts russia debt rating 1 notch

 



Arab Today, arab today
Arab Today, arab today Youssra depended on colored foam

GMT 16:53 2017 Tuesday ,05 September

Youssra depended on colored foam
Arab Today, arab today Lufthansa chief eyes up to 78

GMT 11:29 2017 Thursday ,21 September

Lufthansa chief eyes up to 78
Arab Today, arab today Etiquette expert underlines importance of gifts

GMT 17:52 2017 Sunday ,03 September

Etiquette expert underlines importance of gifts
Arab Today, arab today Rouhani at UN defends Iran nuclear deal

GMT 09:41 2017 Thursday ,21 September

Rouhani at UN defends Iran nuclear deal
Arab Today, arab today Saudi Arabia to unblock internet calling apps

GMT 11:31 2017 Wednesday ,20 September

Saudi Arabia to unblock internet calling apps
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Ministry seeks to improve education

GMT 14:49 2017 Sunday ,17 September

Ministry seeks to improve education
Arab Today, arab today New Zealand opposition looks

GMT 10:35 2017 Thursday ,14 September

New Zealand opposition looks
Arab Today, arab today Puerto Rico, Virgin Islands brace

GMT 12:01 2017 Wednesday ,20 September

Puerto Rico, Virgin Islands brace
Arab Today, arab today The history of solar eclipses

GMT 05:16 2017 Sunday ,20 August

The history of solar eclipses
Arab Today, arab today Intel chips loaded in Waymo

GMT 14:43 2017 Wednesday ,20 September

Intel chips loaded in Waymo
Arab Today, arab today Five trends at the Frankfurt auto show

GMT 12:04 2017 Monday ,18 September

Five trends at the Frankfurt auto show
Arab Today, arab today Actress Ream Hhagag prepares for a new film

GMT 09:40 2017 Tuesday ,19 September

Actress Ream Hhagag prepares for a new film
Arab Today, arab today France hopeful of persuading Trump

GMT 06:21 2017 Wednesday ,20 September

France hopeful of persuading Trump

GMT 12:14 2017 Monday ,18 September

Horia Farghaly happy for success of “Case G”

GMT 05:05 2017 Tuesday ,12 September

Pregnant woman's suicide roils China

GMT 16:53 2017 Saturday ,02 September

Mai importance of gifts during Eid Al-Adha

GMT 19:18 2017 Monday ,18 September

5,000 'Dieselgate' deaths in Europe per year

GMT 10:46 2017 Saturday ,05 August

Nanis reveals simple ideas for home renovation

GMT 04:26 2017 Wednesday ,20 September

Opioid overdose deaths take 2.5 months

GMT 16:04 2017 Tuesday ,19 September

Egypt tourism revival steady but slow

GMT 17:12 2017 Monday ,07 August

Al-Shawaifi reveals secrets of total solar eclipse

GMT 12:46 2017 Thursday ,21 September

Google likely to buy stake in Taiwan smartphone maker HTC

GMT 11:37 2017 Saturday ,12 August

Fashion designer reveals her new collection
Arab Today, arab today
Arab Today, arab today
 
 Arab Today Facebook,arab today facebook  Arab Today Twitter,arab today twitter Arab Today Rss,arab today rss  Arab Today Youtube,arab today youtube  Arab Today Youtube,arab today youtube
arabstoday arabstoday arabstoday arabstoday
arabstoday arabstoday arabstoday
arabstoday
بناية النخيل - رأس النبع _ خلف السفارة الفرنسية _بيروت - لبنان
arabstoday, Arabstoday, Arabstoday