23 Apr 2010 10:57

S&P gives Russian global U.S. dollar bonds 'BBB' rating

MOSCOW. April 23 (Interfax) - Standard & Poor's Ratings Services has assigned a 'BBB' rating to Russia's global U.S. dollar bond (foreign currency BBB/Stable/A-3, local currency BBB+/Stable/A-2), in line with the long-term foreign currency sovereign rating.

"We expect that Russia's budgetary and balance sheet performance will gradually improve between 2010 and 2014, due to the stabilization of Russia's terms of trade and the commitment of the authorities to consolidating the country's fiscal position over the next several years," S&P said in a press release.

"The 2009 general government deficit was 5.9% of GDP, lower than the original target of 8.3% of GDP. Although the government has already lowered its deficit target for 2010, to 6.0% of GDP from 7.5%, we believe the final figure is likely to be better than the revised target if domestic demand recovers in the latter part of the year and if oil prices remain at their current level of nearly 40% above the budgetary assumption of $59 per barrel," S&P said.