Moody’s confirms high rating of Russia

Moody’s has confirmed Russia’s credit rating at Baa1 with a sustainable forecast, ITAR-TASS reports.

Russia has a relatively low governmental debt, flexible currency rate, balanced budget, low expenses for debt servicing.

Russia has $475 billion of currency reserves. The flexible currency rate smoothens changes in oil prices.

The rating can be improved by higher economic growth, better corruption control and respect of law.

Moody’s expects the rate of oil extraction to stay the same or drop. Gas extraction will increase, although demand for gas may drop.

Adapted from Vestnik Kavkaza