Moody’s is optimist about the Russian economy

At the end of October, Moody’s issued its last report on the Russian economy for this year and the outlook for 2017. According to the agency, the incomes registered by Russian companies have generated economic growth which is a positive sign for the banking system, which has triggered the positive outlook for the year to come. It is worth specifying that the at the beginning of the year, Moody’s had issued a negative outlook for the local economy. The new upgrade represents Moody’s expectations in relation to the banking system’s creditworthiness. Moody’s previsions reflect the next 12 to 18 months.

Among the factors enumerated by the agency are the economic recovery and the stability registered by the macroeconomic indicators which will help Russian banks to improve their profits and retentions of capital. Also, for the beginning of next year, Moody’s announced the stabilization of the oil price and the incentives provided by the Government are the most important drivers of economic growth in 2017.

Standard and Poor’s also revised its rating on Russia

• At the end of 2015, Standard and Poor’s announced a 0% economic growth for Russia in 2016. However, in April the agency changed its outlook and provided for a 1.9% economic increase by the end of 2016. Until now, the last forecast proved more accurate, as Russian companies have registered significant growth in their incomes.
• In September 2016, Standard and Poor’s also revised its outlook for Russia from negative to positive. The same forecast was issued by Fitch around the same date. These changes were mainly due to the economic increase reported by the Russian National Bank.