Fitch confirms Russia's low investment grade rating with negative outlook

25 Jul, 2016 10:39

The Fitch international credit rating agency has left Russia's issuer default ratings at the lowest investment grade at 'BBB-', affirming a negative outlook.

The move came after a review of the sovereign rating criteria last Monday, according to the agency.

The issuer default ratings (IDR) indicate an entity's relative vulnerability to default on financial obligations. These include rated entities in different sectors, sovereigns and insurance companies as well as financial and non-financial corporations.

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The same rating had been previously assigned to Turkey, Indonesia, India, Uruguay and South Africa.

The agency has also confirmed the country’s long-term senior unsecured local currency bonds at 'BBB-'.

The short-term foreign currency IDR has been left at 'F3', with the actual capacity for timely payment of financial commitments valued as adequate. Russia has been assigned a new short-term local currency IDR of 'F3'.

Earlier this year, Standard and Poor’s affirmed Russia’s 'BB+' foreign currency and 'BBB-' local currency ratings with a negative outlook. Moody's Investors Service confirmed the country's Ba1 government bond and issuer ratings, assigning a negative rating outlook as well.