6 Mar 2022 18:57

Russia to remain without investment grade rating for long time even if geopolitical risks abate, sovereign debt service restored - Moody's

MOSCOW. March 6 (Interfax) - Moody's has warned that Russia, whose sovereign credit rating on the rating agency's scale has already been downgraded to the near-default Ca level, will not be able to regain its investment grade rating as it was just recently, even in an optimistic scenario of developments.

"Even in a scenario where geopolitical risks abate and sovereign debt service is restored, the marked deterioration in Moody's assessment of Russia's weak institutional strength is likely to keep the ratings well below investment grade for a prolonged period," the agency said in a statement.

The decision to restrict external payments of sovereign debt "further weakens Moody's already very low assessment of Russia's institutional strength," the statement said. "An increasing unpredictability of government actions is a reflection of a lack of checks and balances around the executive," the agency said.