Moody’s changes Russian banking sector outlook

International rating agency Moody’s has worsened its outlook on the Russian banking sector to stable from positive amid a slower economic growth.

Moody’s expects that a weak economic growth will curb improvements over the next 12–18 months.

The agency believes that Russia is facing a number of economic difficulties and lowered its forecast for the country’s gross domestic product (GDP) growth in 2019 to 1.2% from 1.6% and expects economic growth of 1.5% in 2020, vice president and senior credit analyst Olga Ulyanova said.

According to the agency, the share of troubled banks is expected to stay at slightly less than 10% over the next 12–18 months, the Prime news agency reported.