S&P left Russia's rating at the "garbage" level

The International rating agency Standard & Poor's (S&P) left the long -term rating of Russia in foreign currency at the BB+level (below the investment, “garbage” level) with a “negative” forecast. This is stated in a press release from the agency entering Slon.

The negative forecast for ratings reflects the agency’s point of view that the rate of reduction in budgetary reserves of the Russian Federation in the next 12 months may be faster than analysts expect, the review is indicated. Russian ratings can be reduced if the geopolitical situation leads to toughening anti -Russian sanctions.

“We assume that the real growth of GDP per capita in Russia throughout our planning horizon (2015-2018) will remain lower on average than in countries with a comparable level of per capita income. The economy in 2015-2018 will grow by 0.4% annually, which is lower than the average growth rate of the previous four years (2.4%), ”S&P believes.

Earlier on October 16, it became known that S&P sharply worsened forecasts for Russia's GDP in 2015 and 2016. This year, as the agency expects, the Russian economy will be reduced by 3.6%, and not by 2.6%, as previously predicted. In 2016, GDP will grow by 0.3% against previously expected 1.9%.

S&P reduced Russia's rating to “garbage” in January 2015. As the agency indicated, this is caused, among other things, the “sharp decrease” of the flexibility of monetary policy. According to S&P, the Central Bank of the Russian Federation is forced to make more and more difficult decisions and at the same time try to maintain GDP growth.

In February, the agency lowered to “BB+” long -term credit ratings of Gazprom, Gazpromneft, Rosneft, Russian Railways, Novateka, MTS, Megafon, Rossetei and Transneft. Later, to the “garbage” level, Russia's rating was reduced by Moody's agency.