Fitch Keeps Russia's Sovereign Rating Unchanged at 'BBB' With Stable Outlook

Fitch Ratings maintained Russia's issuer default credit rating at BBB with a stable outlook, Sputnik reports.

“Fitch Ratings has affirmed Russia's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDR) at 'BBB'. The Outlook is Stable”, Fitch Ratings said on late Friday in a statement.

The agency pointed out Russia’s solid sovereign net foreign asset position, low government debt, and rising fiscal savings.

“These credit strengths are balanced by low growth prospects, high commodity dependence and weak governance indicators relative to peers. Geopolitical tensions, existing sanctions and the continued threat of sanctions' escalation weigh on Russia's external financing flexibility, investment and growth prospects”, the statement said.

According to Fitch Ratings, Moscow’s strong commitment to inflation targeting, exchange rate flexibility and prudent fiscal strategy ensure the country’s macroeconomic stability, improving resilience to external shocks as well as lowering dependence on oil prices.

In August 2019, the international credit rating agency upgraded Russia's Long-Term Foreign- and Local-Currency Issuer Default Ratings (IDRs) to 'BBB' from 'BBB-'.