Oreshkin: Global Credit Rating Agencies Underestimate Russia

The global capital market provides a higher assessment of Russia’s credit rating that rating agencies do, Russia’s minister of economic development Minister Maxim Oreshkin said on Saturday, according to state-run news agency TASS.

Earlier in the day, Standard & Poor’s (S&P) said it upheld Russia’s rating at BBB- with a stable outlook. The credit rating agency lowered the forecast for Russia’s GDP growth from 1.5% to 1.3% because of slowing economic growth in Q1 of 2019.

“It is more important for Russia how the market assesses us, what is going on the domestic securities market and foreign markets. We can see here that the market assessment of the Russian market is better that assessment by rating agencies. We pay interest on our liabilities based on the assessment by investors, not rating agencies,” Oreshkin said in an interview with the Rossiya 24 broadcaster.

The minister noted that it was important for Russia to show that economic growth rate, which was low in the first quarter of 2019, has stabilized, and to surpass the worldwide average rate in the future.

Also on Saturday, the Russian Finance Ministry said it welcomes Standard & Poor’s Global Ratings to keep Russia’s credit rating at BBB-with stable outlook.

“We positively assess the decision of the S&P Global Ratings agency to confirm Russia’s foreign currency long-term credit rating at BBB-with stable outlook,” the finance ministry’s press service said.

Among bases for future upgrade of Russia’s credit rating will be the maintenance of the positive trends in economic growth and the economy’s decreasing dependnece on volatile fuel prices, the ministry added.