S&P confirms Russia ratings, concerned on succession

31st August 2011, Comments 0 comments

Standard and Poor's on Wednesday affirmed Russia's credit ratings and kept a stable outlook, noting the government still enjoyed relatively low debt but expressing concern over political uncertainty.

The global ratings agency kept its BBB/A-3 foreign currency and BBB+/A-2 local currency ratings on Russia, with the outlook stable.

"Government debt levels are relatively low and the government enjoys a net creditor position as measured by narrow net external debt," S&P said in a statement.

"These strengths are offset by the vulnerability of the budget and the economy to fluctuations in key export prices."

The agency warned Russia about its continued reliance on commodity exports and "an ambiguous succession process" that may or may not see former president and current premier, Vladimir Putin return to the Kremlin next year.

© 2011 AFP

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