Contact Group supports disengagement of forces in Donbass — officialWorld October 26, 19:32
IOC strips Russian runner Volkova of 2008 Olympics bronzeSport October 26, 19:15
Analyst says Russian air strikes in Syria cause 70% slump in militants’ oil traffickingRussian Politics & Diplomacy October 26, 18:44
NATO chief concerned over Russia's actions in SyriaWorld October 26, 18:28
Armed OSCE mission may be deployed to Donbass after security zones set up — diplomatRussian Politics & Diplomacy October 26, 18:18
Diplomat: Humanitarian organizations fail to ensure evacuation from AleppoRussian Politics & Diplomacy October 26, 18:15
First footage of post-Soviet Joint Air Defense System drillsMilitary & Defense October 26, 18:15
Putin says Kerch Bridge will allow to carry up 13 mln vehicles per yearBusiness & Economy October 26, 17:59
Another German delegation gearing up for possible visit to Crimea in JanuaryWorld October 26, 17:42
MOSCOW, January 16 (Itar-Tass) —— The Fitch international ratings agency has affirmed Russia’s issuer default rating (IDR) at BBB, while revising the country’s long-term foreign and local currency IDR outlook to stable from positive, the agency said in a statement Monday.
The political uncertainty in Russia has risen and the global economic outlook has worsened since Fitch last affirmed the country’s rating in September 2011.
Moreover, the agency said that political risk, reflected by poor governance indicators, is a long-standing weakness compared with most other BBB-rated countries, and recent events have highlighted the limitations and risks associated with Russia’s political model.
According to the agency, higher-than-expected oil prices stimulated public finances to outperform the budget in 2011.
The federal budget recorded a surplus of 0.8 percent of the country’s Gross Domestic Product (GDP), as compared to a deficit of 2.3 percent of GDP under the revised on June 2011 budget plans, the agency wrote.
In 2012, under a Brent oil price of close to 100 U.S. dollars per barrel, Russia’s federal budget is projected to record a deficit of 2.0 percent of GDP. This assumes some slippage from the 1.5 percent of the GDP target in the 2012 budget approved by the Russian president in December 2011, the agency reported.
Furthermore, the agency said that Russia’s net external creditor position, at both the national and sovereign level, forms a buffer to external shocks and is a major support to the rating. Sovereign net foreign assets reached 486 billion U.S. dollars, or 27 percent of GDP, at the end of 2011, the fifth-strongest in the BBB category, the agency wrote. The private sector owes 300 billion U.S. dollars, or 26 percent of GDP, and is a net external debtor, but short-term external debt is lower than in 2008, and better covered by reserves, the agency wrote.