Moody's holds Russia's sovereign bond rating at Baa1, cuts outlook to 'negative' | Russia Beyond The Headlines

Moody's holds Russia's sovereign bond rating at Baa1, cuts outlook to 'negative' | Russia Beyond The Headlines:



"The review of Russia's government bond rating that Moody's Investors Service started two months ago amid the escalation of the Ukrainian crisis has ended up in a compromise solution: the rating outlook has been cut to 'negative' but the rating itself has been held at Baa1 level, although there were some signs back in March that it could be downgraded by one or even two levels.



Moody's reported on March 28 that Russia's Baa1 rating was put on review with the prospect of being downgraded because of the weakening economy and growing geopolitical risks. The agency said then that, if it decided to downgrade the rating, the most likely scenario would be its lowering by one level. It warned, however, that, if there were signs that the current events could cause serious turmoil, Russia's rating could be lowered by more than one level as well.



The agency said it could hold Russia's sovereign rating if the tension was alleviated or an anti-crisis decision was made capable of improving the prospects of the country's economic growth."



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