MOSCOW, February 9. /TASS/. The tensions between Russia and Ukraine are likely to remain heightened but stop short of a further outright military conflict, Moody’s experts believe. Meanwhile, the rating agency expects Russia’s invasion into Ukraine to result in both sovereign ratings being placed on review for downgrade.
Earlier, Fitch rating agency also said that strict sanctions against Moscow in the event of an escalated military conflict might lead to negative consequences for the country’s sovereign rating and the ratings of Russia’s banks.
"Though a very unlikely scenario, sanctions that disrupt Russia's ability to execute cross-border payments in a timely manner could impede sovereign debt payments," Moody’s said.
"Russia has significant buffers that help to insulate its credit profile in the short term from the effects of most new sanctions," Vice President-Senior Credit Officer at Moody's Evan Wohlmann was quoted as saying. "Still, while an unlikely and very remote scenario, severe sanctions that lead to a delay in the repayment of Russia's external debt obligations could result in a default under our definition and a downgrade of the rating," he added.
Concerns over Moscow's alleged preparations for an invasion into Ukraine have been increasingly announced in the west and in Kiev recently. Kremlin Spokesman Dmitry Peskov castigated these statements as an empty and groundless escalation of tension, emphasizing that Russia posed no threat to anyone. At the same time, the Kremlin press secretary did not exclude some possible provocations to justify such claims and warned that the attempts to resolve the Ukrainian conflict by force would carry extremely serious consequences.