World largest rating agency, Moody’s, unveiled its decision to downgrade Russia’s sovereign credit rating. According to the released report, the rating was lowered by one notch to Ba1, also known as speculative, with negative outlook. Moody’s is not the only agency to take rating actions on Russia. Earlier, S&P also downgraded the Russian sovereign rating to BB+. Experts of both firms cite similar drivers impairing Russia’s economy – military conflict and political crisis in neighboring Ukraine, slump in global oil prices and large-scale devaluation. These exactly were the reasons for the rating revision. Undoubtedly, sanctions from the West had their adverse effect on the economy. Taking into account all of the circumstances, medium-term outlook for the economic growth in Russia is rather obscure, the Moody’s analysts believe. Although such a decision came as a disappointment, it was no surprise. Finance Ministry promised to continue an open dialogue with the representatives of the international agencies in hope for the rating improvement in the future.
