Moody's reduced the ratings of the largest Russian companies

The Moody's International Agency, following a decrease in Russia's credit rating, has lowered the ratings of the largest Russian companies. This was reported on the website of the agency.

Rosneft's rating is reduced to the level of "BAA2" with "BAA1". The rating forecast is "negative." Corporate ratings of LUKOIL OJSC and Norilsk Nickel OJSC are confirmed by Moody's at the VAA2 level. At the same time, the forecast of the rating of companies was worsened from the "stable" to the "negative".

The priority unsecured ratings of Russian Railways OJSC and its subsidiary RZD Capital PLC, as well as the ratings of Russian Railways debt obligations are reduced to BAA2 with BAA1. The forecast for all ratings is "negative."

Earlier on Tuesday, Moody's lowered the rating of the seven largest financial institutions in Russia . Sberbank, VTB, Gazprombank, Rosselkhozbank, mortgage housing lending, vneseconobank, as well as Alfa-Bank were included in the list. The forecast for long -term ratings of these banks remains negative.

Moody 'S explained its decision by a decrease in the ability of the Russian government to provide, if necessary, supporting the banking system. At the same time, the agency noted that improving the ratings of financial institutions that fell into the list in the near future is unlikely, and did not exclude further reduction in the rating in case of worsening the Russian credit rating.

On October 18, Moody's lowered the long -term credit rating of Russia by one step - from BAA1 to BAA2. The reasons for the reduction in the rating were called the slowdown in the medium term of economic growth in Russia and the continuing crisis in Ukraine, which affects the Russian economy in the form of sanctions, including restrictions on the largest banks and key companies of the defense and energy industry.

In addition, as Moody's analysts noted, the situation is influenced by low oil prices, the continuing flight of capital and the reduction of the Goldoval Mountain Reserves of the Central Bank, as well as a decrease in investor trust, the fall of internal demand and difficulties in the access of borrowers to international lending markets.