Arab Today, arab today fitch cuts russia credit rating sets negative outlook
Last Updated : GMT 22:02:29
Arab Today, arab today
Arab Today, arab today

Fitch cuts Russia credit rating, sets negative outlook

Arab Today, arab today

Arab Today, arab today Fitch cuts Russia credit rating, sets negative outlook

Fitch Ratings agency
Washington - AFP

Fitch Ratings cut Russia's credit grade Friday to just one notch above junk level, saying plunging oil prices and Western sanctions will force a four percent economic contraction this year.
Fitch lowered its rating for Russian government debt by one step to  BBB-, the lowest possible investment grade, and added a negative outlook on the rating.
"The economic outlook has deteriorated significantly since mid-2014 following sharp falls in the oil price and the ruble, coupled with a steep rise in interest rates," Fitch said.
"Western sanctions first imposed in March 2014 continue to weigh on the economy by blocking Russian banks' and corporates' access to external capital markets."
The agency said that had forced it to cut its forecast for the Russian economy this year to a 4.0 percent contraction, compared with its previous forecast of a 1.5 percent contraction and growth of 0.6 percent in 2014.
"Growth may not return until 2017," the agency warned.
Fitch said it was assuming that the price of crude oil, a major source of government income, would average $70 a barrel, well above the $50 level the Brent global benchmark traded at in London Friday.
"If the oil price stays well below this, it could precipitate a deeper recession and put further strain on public finances, severely limiting the authorities' room for maneuver," Fitch said.
It also said that with the ruble still weakening, and sanctions blocking access to global capital markets, Russia banks could suffer more and the government will be challenged to further support them.
On the other hand, the government still merited an investment-grade rating because it has a low level of debt and solid, if deteriorating, foreign assets.
The longer sanctions remain in place, Fitch said, these positive attributes could be eroded
"Russia's current predicament has done little to hasten the onset of a more liberal economic policy agenda and raises the risk of greater isolationism," it added.

 

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 fitch cuts russia credit rating sets negative outlook Arab Today, arab today fitch cuts russia credit rating sets negative outlook

 



Arab Today, arab today
Arab Today, arab today Jordan airline suggests flyers 'talk'

GMT 11:59 2017 Friday ,24 March

Jordan airline suggests flyers 'talk'
Arab Today, arab today 5 Crafty Must-Have Limited-Budget Ideas

GMT 17:03 2017 Saturday ,25 March

5 Crafty Must-Have Limited-Budget Ideas
Arab Today, arab today Dozens dead in US-led Syria strikes

GMT 08:35 2017 Thursday ,23 March

Dozens dead in US-led Syria strikes
View News in Arabic - Business: أخبار الشركات
Arab Today, arab today
Arab Today, arab today
Arab Today, arab today Yemen children dream of school

GMT 07:25 2017 Friday ,24 March

Yemen children dream of school
Arab Today, arab today MP submits a petition to dismiss university head

GMT 06:21 2017 Friday ,24 March

MP submits a petition to dismiss university head
Arab Today, arab today Salvage of South Korea's Sewol ferry

GMT 04:51 2017 Friday ,24 March

Salvage of South Korea's Sewol ferry
Arab Today, arab today Prepares to give stargazers an eyeful

GMT 13:38 2017 Monday ,06 March

Prepares to give stargazers an eyeful
Arab Today, arab today Audi RS 5 Coupe acquires new design

GMT 13:22 2017 Thursday ,23 March

Audi RS 5 Coupe acquires new design
Arab Today, arab today Renault Trezor wins design award

GMT 11:56 2017 Tuesday ,21 March

Renault Trezor wins design award
Arab Today, arab today Actress Mervat Amin reveals her role in new series
Arab Today, arab today 2017 already marked

GMT 15:25 2017 Tuesday ,21 March

2017 already marked

GMT 06:04 2017 Thursday ,23 March

Haifa Wahby bets on her new drama show

GMT 22:00 2017 Thursday ,23 March

Number of unwedded girls amounts to 2.5m

GMT 18:57 2017 Tuesday ,21 March

Accessories designer reveals her new collection

GMT 10:34 2017 Tuesday ,21 March

Mexico threatens to ditch US corn imports

GMT 13:26 2017 Friday ,24 February

Expresses Algerian history by woody figures

GMT 20:03 2017 Saturday ,25 March

Health expert warns from dust sensitivity

GMT 07:36 2017 Wednesday ,22 March

US, Britain ban laptops on flights

GMT 06:31 2015 Thursday ,04 June

Pluto's unruly moons

GMT 19:27 2017 Saturday ,11 March

Boualsof launches "Priestess Kahina" 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