The transfer and convertibility assessment for Russia-based non-sovereign issuers is "associated with the risk of the Russian government or central bank restricting access to foreign exchange needed for debt service," the agency's statement said.
This revision does not affect any ratings, the statement said. However, certain operating risks resulting from the difficult business environment have contributed to keeping non-sovereign ratings below the sovereign rating.
"The transfer and convertibility assessment remains one notch above the long-term foreign currency sovereign credit rating for Russia and reflects Standard & Poor's view that the probability of the sovereign restricting access to foreign exchange needed for non-sovereign debt service is slightly less than the probability of the sovereign defaulting on its foreign currency obligations. The distinction is based on the outward orientation of Russia's economy (current account receipts amount to 37% of GDP) and the fairly unrestrictive nature of Russia's foreign exchange regime," S&P said.
