Moody’s lowers rating of Russia, weighed down by the fall in oil – Boursorama

Moody's lowers rating of Russia, weighed down by the fall in oil – Boursorama

Manfestation in Moscow December 28, 2014, including in protest against the rise of the dollar against the ruble ( AFP / File / Dmitry Serebryakov)

The credit rating agency Moody’s downgraded a notch Friday, “Baa3″, the debt rating of Russia whose finances include leaded by the recent fall in world oil prices.

“The significant drop in oil prices and the impact of the exchange rate will undermine further the growth prospects of the already dark country,” Moody’s wrote in a statement,

The note of the Russian debt is now more than a notch in the category of obligations “rotten”, regarded as particularly risky for investors.

According to Moody’s, the credit worthiness of Russia, already tested by the Ukrainian crisis, suffering from the plummeting world crude oil prices, whose country is a major exporter, and capital flight that has drop its currency.

The ruble has lost about 16% since the beginning of the year against the dollar, after falling 41% in 2014 caused in particular by the economic sanctions imposed on Moscow for his alleged role the crisis in Ukraine.

The decrease of budget revenues of the country and “erosion” of its foreign exchange reserves will weaken “financial strength” of Russia, which approximates the economic recession, ensures the rating agency.

According to government estimates, the Russian economy could well suffer a contraction of 4% of its gross domestic product and the budget deficit to 3% in 2015.

In this context, Moody specifies’s have already begun a new review of Russian finances which could lead to a new downgrade of the country if the economic and geopolitical situation were to get worse.

“Lowering the note one step would be the most plausible although more serious outcome can not be excluded in such a volatile environment, “warns the agency.

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