×
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.

Moody's Says Russian Economy Resilient to Latest U.S. Sanctions

Imago / TASS

Rating agency Moody's Investors Service said on Wednesday Russia's strong public and external finances would shield its economy from the impact of the latest U.S. sanctions.

However, the sanctions will be credit negative for some Russian debt issuers, especially Russian aluminum giant United Company Rusal Plc, Moody's said in a report.

The Russian banking system has enough earnings capacity for absorbing credit losses arising from exposures to sanctioned companies, the rating agency said.

Moody's assessment is in contrast to that of Fitch Ratings, which said last week the U.S. sanctions would limit Russia's potential economic growth and severely impact targeted companies.

The U.S. Treasury imposed sanctions earlier this month on seven Russian oligarchs and 12 companies they own or control, as well as 17 senior Russian government officials. Moscow calls these sanctions unlawful and has warned retaliation.

"Russia's sovereign credit profile -- its rating is Ba1 with a positive outlook -- is well positioned to withstand the impact of new sanctions," said Kristin Lindow, a Moody's Senior Vice President and co-author of the report.

"Higher oil prices will help the government to make further progress in rebuilding its fiscal savings."

The risk to Russia's credit profile comes from the possibility of Russian entities being cut off from the international capital market for some time, Moody's noted.

Moody's expects the Russian government to increase support to regions facing a fall in revenues due to the sanctions.

Washington cites Russia's 2014 annexation of Crimea from Ukraine, involvement in the Syrian civil war and alleged meddling in the 2016 U.S. presidential election for the sanctions. 

… 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