Investment gave the green light

Standard & Poor's has upgraded Russia's rating from speculative to investment.
Investments were given the green light of investment, rating, Standard & Poor & 039s, Russia, economy, investors, growth, level, also, rating, agency, Russian, sovereign, influence, level, state, rating, forecast, dependencies, rates

This is stated in a press release agency. According to the document, the International Rating Agency upgraded Russia's rating to investment grade BBB- from speculative BB +, the outlook is stable.
"A positive influence on the ratings of the Russian Federation is exerted by its adherence to conservative macroeconomic policies, the strong position of an external net lender, a low level of government debt and a relatively high level of flexibility in monetary policy, including a flexible exchange rate," Standard & Poor's report says.
At the same time, according to analysts, negative rating factors are the dependence of the income of the Russian economy on activities related to the export of oil and gas, as well as significant restrictions in the institutional and regulatory sphere. Ratings are also limited by geopolitical tensions and the resulting international sanctions, which have a restraining effect on the long-term prospects for economic growth, adds Standard & Poor's.
"We can take a positive rating action on the Russian Federation if the economic recovery trend intensifies and the long-term growth rate of GDP per capita reaches a level comparable to countries of the same level of economic development. Faster than expected, consolidation of the budget and sustainable compliance with the budget rule leading to less dependence of government finances on volatile commodity prices may also lead to a positive rating action. ” It is believed in the comments of analysts.
According to Standard & Poor's, the recovery of the Russian economy will continue until 2021 - after recovering from recession in 2017. The agency predicts that in 2018, Russia's real GDP will grow by 1.8% and by 1.7% in 2019-2021.
Economic recovery is likely to be supported by rising oil prices, as well as some increase in domestic consumption amid a gradual weakening of monetary policy and global economic growth, analysts predict. At the same time, the unfavorable demographic situation and the low level of labor productivity will continue to put pressure on the pace of long-term growth of the Russian economy.
The assignment of Russia by Standard & Poor’s investment rating is a long-awaited decision, it will increase investor interest in the country, says Finance Minister Anton Siluanov, quoted by RIA Novosti.
"This is a logical and expected decision. Our economy has very quickly adapted to the new conditions, shows positive growth rates. Assigning an investment rating will certainly increase investor interest in our country, and not only in investments in state assets, but also in private business. Because the revision of the sovereign rating will have a positive effect on a similar increase in the ratings of corporate market participants and banks and, as a result, a decrease in the cost of their borrowings, "the minister stressed.
Experts believe that the forecast of an international rating agency will have a positive impact on the Russian stock market. At the same time, they warn that the S & P decision is unlikely to have a significant impact on the Russian debt market or the dynamics of the Russian currency in the medium term.
"Judging by the dynamics of Russian assets in the last couple of weeks, it can be assumed that a number of market participants were already pawned to raise the sovereign rating from S & P.The current levels of yield on the debt market and the values ​​of CDS (credit default swap, credit default swap) in general already correspond to the investment grade rating, ”Mikhail Poddubsky, an analyst at Promsvyazbank, quotes TASS.
Independent financial analyst Konstantin Selyanin warns against excessive optimism in connection with the decision of S & P: “Indeed, there are restrictions for large international investors associated with the rating of the country whose securities they acquire. Now investors have the opportunity to invest in Russia. ... However, the availability of the opportunity to invest in Russia at the expense of the rating does not yet mean a desire to invest in our country. So far there is not enough people who want to come to the Russian Federation with serious money. <...> News about the increase in sovereign rate Nga Russia to the investment level is good, but I would not overestimate it. "
Candidate of Economic Sciences, Associate Professor of the Department of State and Municipal Administration of Kursk State University Alexey Belostotsky tells about his assessment of Standard & Poor’s decision and its possible causes: "Despite the introduction of political and economic sanctions against our country,In recent years, we have constantly heard the desire of Western "partners" (from Germany, the USA) to continue and develop mutually beneficial cooperation, regardless of artificially imposed restrictions. <...> And of course, in these conditions, everyone expected the S & P rating agency to increase Russia's sovereign credit rating from garbage (BB +) to investment (BBB-) with a stable outlook, since it had already been done by Fitch, convention adopted among investors, the issuer's rating is considered to be an investment, if two of the three agencies attribute it to this category (since at the moment Moody's leaves its negative outlook). <...>
And the matter is not at all in the rise in oil prices and the strengthening of the ruble exchange rate, but in the fact that the government’s financial and economic policy, despite its conservative nature, is quite resistant to external challenges, financial crises and other shocks in many respects, <. ..>
I believe that the progress achieved in the above areas still makes rating agencies reconsider their vision of the economic situation and build new strategic forecasts,and the developing Russian economy is forcing our Western "friends" to really look at the prospects for mutually beneficial cooperation, regardless of what the United States dictates, although this is a rather belated reaction. "
Well, something like this.
The full version of the material with detailed comments of experts can be read here.
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