×
Enjoying ad-free content?
Since July 1, 2024, we have disabled all ads to improve your reading experience.
This commitment costs us $10,000 a month. Your support can help us fill the gap.
Support us
Our journalism is banned in Russia. We need your help to keep providing you with the truth.

S&P Mulls Upgrade for Russia

Russia, Ukraine, Poland and "possibly" Hungary may be upgraded after Standard and Poor's decision yesterday to raise the Czech Republic's credit rating, ING Groep said Thursday.

The countries may have assessments of creditworthiness lifted in the next six months, Simon Quijano-Evans, chief economist for the Europe, Middle East and Africa region at ING in London, wrote in a note to clients.

S&P raised the Czech Republic's long-term foreign-currency debt two steps to AA- from A, citing the government's low indebtedness and the "prudently managed and balanced economy." The country now has the fourth-highest grade, on par with euro-region Estonia.

This is "yet another example of the emergingmarket versus G7 ratings convergence that will continue at an apparently accelerating pace," Quijano-Evans wrote. "Look for more upgrades in the region in the next six months."

Standard & Poor's downgraded the United States in the country's first-ever ratings cut this month as the company said it was less confident Congress would end Bush-era tax cuts or tackle spending on entitlements. S&P also reduced Japan's creditworthiness to AA- in January, putting it on par with China.

Russia may see its rating rise due to its level of public debt, current account and the budget situation, according to ING. Ukraine's budget performance and "impulses from the International Monetary Fund" may also prompt an upgrade. In Poland, the rating companies will wait for the government's decisions on fiscal policy following the general election on Oct. 9, ING said.

Turkey should have its debt assessment raised, "but ratings agencies are clearly placing a lot of emphasis on the current account," ING said. The country's 12-month current-account deficit widened to a record $72.5 billion in June.

… we have a small favor to ask. As you may have heard, The Moscow Times, an independent news source for over 30 years, has been unjustly branded as a "foreign agent" by the Russian government. This blatant attempt to silence our voice is a direct assault on the integrity of journalism and the values we hold dear.

We, the journalists of The Moscow Times, refuse to be silenced. Our commitment to providing accurate and unbiased reporting on Russia remains unshaken. But we need your help to continue our critical mission.

Your support, no matter how small, makes a world of difference. If you can, please support us monthly starting from just $2. It's quick to set up, and you can be confident that you're making a significant impact every month by supporting open, independent journalism. Thank you.

Once
Monthly
Annual
Continue
paiment methods
Not ready to support today?
Remind me later.

Read more