NEW YORK (Sputnik) — Moody's Investors Service confirmed on Friday Russia's Ba1 government bond and issuer ratings and assigned a negative rating outlook.
According to the Moody's statement, the Russian economy has shown resilience to the renewed drop in oil prices while "the fiscal appears sufficient to reduce the 2016-18 deficits to a level that can be financed in the domestic capital markets and through fiscal reserve drawdowns."
"The negative outlook relates to the lack of a comprehensive strategy to address the quicker depletion of the government's fiscal savings that would occur should deficits remain above 2%-3% of GDP and privatization proceeds not materialize to the extent the government anticipates, which would leave it increasingly reliant on domestic debt financing at rising cost and shortening maturities," the statement said.
