Russia on the brink of junk evaluation. Fitch downgrades – TVP

Russia on the brink of junk evaluation. Fitch downgrades – TVP

Agency explained that the downgrade Russia’s rapid deterioration is related to economic development prospects against the decline in oil prices, the depreciation of the ruble and an increase in interest rates.

Then there are the effects of Western sanctions. “Putting pressure on the economy, blocking Russian companies and banks’ access to external capital markets” – says the agency.

Fitch estimates that currency and bullion reserves in Russia in 2014 decreased more than the agency predicted, and smaller still. At the end of 2014 years they were reduced by $ 120 billion than at the end of 2013.

The indicators are going down

The Agency states that in 2015 Russia’s gross domestic product will fall by 4 per cent., The budget deficit will reach 3.7 percent. GDP and inflation at 8.5 percent. Fitch to growth of Russia’s economy will return no earlier than in 2017.

October 17, 2014 year, another rating agency Moody’s Investors Service downgraded Russia to Baa2 from Baa1. It is only two stitches above junk status. October 24th-third of the big agencies Standard & amp; Poor’s reaffirmed Russia’s credit scores at BBB-. Also in the case, which is the lowest investment grade.