Chinese rating agency could assign sovereign credit rating to Russia after criteria clarified

MOSCOW. June 14 (Interfax) - China's biggest rating agency will be able to assign a credit rating to Russia after clarifying the new methodology and new criteria for assessing the Russian sovereign rating, Yan Yan, CEO of China Chengxin International Credit Rating (CCXI), told reporters during the signing ceremony for a memorandum on cooperation in sustainable development between rating agencies of Russia and China.

"We need to clarify some issues related to the new methodology, with new criteria for assessing the Russian sovereign rating. New data will be used for calculations because the dollar is now being dropped," he said.

"We will be able to assign a credit rating to Russia as soon as we clarify these data. We hope this will happen as soon as possible and we will work towards this," he said.

The CEO also said this issue was important "also because a number of Chinese companies would like to receive information about Russia, and the availability of a national rating is also very important in this respect."

Marina Chekurova, CEO of Expert RA, also commented on the prospects for cooperation with colleagues from the Chinese rating agency. "Now is a good time to reach a new level of partnership, developing both interaction on credit ratings and green ratings, because we see very big prospects for green financing in Russia. Of course, we do not have such large volumes as China, but despite all the past events, the green movement and green investment is becoming more and more relevant," she said.

Yan Yan said China's green bond market was worth $85 billion.

"We'd be very pleased to provide all possible assistance to our Chinese colleagues in their interaction with Russian issuers, with the regulator, of course, with our Finance Ministry, which is also interested in the further development of the public debt market not only in Russia. We see our role precisely in that we are forming a bridge for our companies to get closer to the Chinese market and, of course, receive borrowing opportunities there," Chekurova said.

Major international rating agencies Fitch Ratings, S&P Global Ratings and Moody's Investors Service withdrew the ratings of all Russian organizations and their subsidiaries in March 2022 in keeping with the EU sanctions against the Russia.

The fourth package of EU sanctions adopted on March 15, 2022 prohibits European agencies from rating the Russian Federation and Russian companies, as well as from providing rating services to Russian clients. According to S&P GR, those measures went into effect on April 15, 2022.