MOSCOW (Pakistan Point News / Sputnik - 10th July, 2021) Fitch Ratings has affirmed Russia's long-term foreign-currency Issuer Default Rating (IDR) at "BBB" with a stable outlook, pointing to the effectiveness of the Russian economic policy.
"Russia's 'BBB' IDRs reflect its credible macroeconomic policy framework, strong external balance sheet (including a large net external creditor position, and highest external liquidity ratio in the 'BBB' category), and the lowest level of general government debt/GDP in the peer group," Fitch said on Friday.
The rating agency said that although the sanctions risk remains high, Russia has demonstrated stability, particularly taking into account the coronavirus pandemic.
"The Stable Outlook reflects the effectiveness of policy in preserving the strength of the sovereign balance sheets and helping anchor macroeconomic stability in the face of the Covid-19 shock and high oil price volatility. Resilience is supported by the credibility of monetary policy, exchange rate flexibility and prudent, counter-cyclical fiscal policy, framed by the budget oil price rule," Fitch said.
