S&P Global Ratings agency made a bigger contribution to economic development in Russia than all local policymakers and analysts did. Glittering promises of stable growth are good, but the market needs actions, not words. After the agency raised Russia’s credit rating to the investment grade, the MICEX index hit the new record high. In merely one hour, the Russian stocks skyrocketed by 1.5%.
According to estimates of Societe Generale SA, the investment grade confirmed by two agencies - S&P and Fitch – can attract investments of over 2 billion dollars in the nearest future, and it is not the limit. Though one member of the Big Three credit rating agencies, Moody's, refrained from raising Russia’s rating which is still one step lower than the investment grade, the outlook for the Russian assets is bright. Oil prices hold near the highest levels, while the US dollar and the euro are not too strong. So, the high demand for the Russian assets which was seen in January continues this month.
Ruble traders are also on a winning streak. The Russian currency appreciated by 2.6%, and foreign investors build up the volume of long deals on this trading instrument. Thing may become even better if Moody's Investors Service also upgrades the credit rating of Russia.
