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Ratings and Rankings for Russia

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Last updated: September 27, 2017


About Standard & Poor’s

Rating Scale of S&P

S&P Sovereign Ratings for Russia

S&P Retrospective Ratings for Russia




About Standard & Poor’s



S&P Rating Services, which is a part of Standard & Poor's Financial Services LLC owned by McGraw-Hill, is one of the Top 3 leading credit rating agencies of the world.

S&P elaborates and releases issuer credit ratings (ICRs) for sovereigns that assess sovereigns’ ability and willingness to service financial obligations to nonofficial (commercial) creditors.

S&P’s web-site: https://www.standardandpoors.com

S&P offers the following key indicators for the sovereign credit risk assessment:

Important note: On June 2, 2017 S&P withdrew the national scale ratings for the Russian issuers and issues (104 issuers and 48 issues in total). This decision resulted from changing regulations on operations of international rating agencies in Russia making their ratings ineligible for regulatory purposes starting from July 14, 2017. S&P was the last rating agency belonging to the Top 3 (together with Moody’s and Fitch) to withdraw the national-scale ratings in Russia. The sovereign ratings for Russia and international scale ratings remained in place. Press-release of S&P: Original (Eng, registration required).



Rating Scale of S&P



Long-Term Sovereign Rating Scale

SymbolsDescriptionGradeComments
AAAExtremely strong capacity to meet financial commitmentsInvestment-
AAStrong capacity to meet financial commitmentsInvestment-
AStrong capacity to meet financial commitmentsInvestmentThe issuer more susceptible to the adverse effects of changes in circumstances and economic conditions as compared to AAA and AA categories.
BBBAdequate capacity to meet financial commitmentsInvestmentAdverse economic conditions or changing circumstances are more likely to lead to a weakened capacity.
BBLowest vulnerability within speculative gradeSpeculativeThe issuer is less vulnerable in the near term than other issuers of speculative grade. There are still major ongoing uncertainties and exposure to adverse business, financial, or economic conditions which could lead to inadequate capacity to meet financial commitments.
BMore vulnerability as compared to 'BB' ratingSpeculativeThere is still the capacity to meet financial commitments that can be impaired by adverse business, financial, or economic conditions.
CCCThe issuer is considered vulnerableSpeculativeVulnerability of the issuer and dependence upon favourable business, financial, and economic conditions in meeting financial commitments.
CCThe issuer is considered highly vulnerableSpeculativeA default has not yet occurred, but S&P expects default to be a virtual certainty, regardless of the anticipated time to default.
SD / DSelective Default / DefaultSpeculativeThe issuer is in default on one or more of its financial obligations. D rating is assigned when there is a general default, and the issuer is considered to fail to pay all or substantially all obligations. SD rating is assigned when the issuer will fail to make payment on specific issue or class of obligations, while the other commitments are likely to be properly met. Distressed exchange offer of the issuer leads to decrease of rating to SD/D.
NRThe issuer is not rated--

Short-Term Sovereign Rating Scale

SymbolsDescriptionGradeComments
A-1Strong capacity to meet financial commitmentsInvestmentSometimes “+” modifier is added that reflects extremely strong capacity.
A-2Satisfactory capacity to meet financial commitmentsInvestmentGreater susceptibility to the adverse effects of changes in circumstances and economic conditions as compared to A-1.
A-3Adequate capacity to meet financial commitmentsInvestmentAdverse economic conditions or changing circumstances are more likely to lead to a weakened capacity.
BVulnerability and significant speculative characteristicsSpeculativeCurrent capacity to meet financial commitments with major ongoing uncertainties which could lead to inadequate capacity.
CCurrent vulnerability to non-payment that would result in 'SD' or 'D' ratingSpeculativeDependence upon favourable business, financial, and economic conditions to meet financial commitments.
SD/DSelective Default / DefaultSpeculativeThe issuer is in default on one or more of its financial obligations. D rating is assigned when there is a general default, and the issuer is considered to fail to pay all or substantially all obligations. SD rating is assigned when the issuer will fail to make payment on specific issue or class of obligations, while the other commitments are likely to be properly met. Distressed exchange offer of the issuer leads to decrease of rating to SD/D.
NRThe issuer is not rated--

Additional information on the S&P’s rating scale can be found at:

https://www.standardandpoors.com/en_US/web/guest/article/-/view/sourceId/504352

Rating Methodology

In the course of elaboration of sovereign ratings S&P relies upon the following factors:

Additional information on the S&P’s sovereign ratings methodology can be found at:

https://www.standardandpoors.com/en_US/web/guest/article/-/view/sourceId/8950072



S&P Sovereign Ratings for Russia



The first sovereign credit rating was assigned to Russia by S&P in October 1996.

Due to default of the Russian state in the course of 1998 crisis the sovereign ratings overcame substantial deterioration with recovery to 1996 levels taking place only in the middle of 2002.

Throughout the 2000s the sovereign ratings were gradually improving reflecting positive changes in economic and financial status of Russia that came in line with oil prices growth. As a result, long-term foreign currency sovereign rating of Russia reached its maximum level of BBB+ in September 2006.

There had been minor deterioration of the sovereign ratings of Russia related to crisis of 2008-2009 with BBB long-term foreign currency sovereign rating assigned. The availability of substantial reserves did not allow for substantial negative changes.

After the beginning of Ukrainian events in March 2014 that were accompanied by deterioration of political and economic relations of Russia there also started rapid deterioration of S&P’s sovereign ratings for the country.

The long-term foreign currency sovereign rating settled at BB+ in January 2015 that is one category below the investment grade and corresponds to the level observed in 2004.

The last amendments to the Russian sovereign rating were made on March 17, 2017, when the sovereign ratings were affirmed at previous levels (BB+/B for foreign currency and BBB-/A-3 for local currency) with outlook changed to “positive”.[1]

On September 15, 2017, the rating was affirmed at BB+ for foreign currency and BBB-/A-3 for local currency with positive outlook.[2]

Russian Federation Rating Score Snapshot

Rating FactorAssessment
Institutional assessmentWeakness
Economic assessmentWeakness
External assessmentStrength
Fiscal assessment: flexibility and performanceNeutral
Fiscal assessment: debt burdenStrength
Monetary assessmentNeutral

Source: Press-release of S&P dated September 16, 2016.[3]



S&P Retrospective Ratings for Russia



DateSovereign credit ratingsLong-term Russia National Scale ratingTransfer & Convertibility AssessmentOutlook
Foreign currencyLocal currency
Long-termShort-termLong-termShort-term
October 4, 1996BB-B----stable
December 19, 1997BB-B----negative
May 27, 1998BB-B----Watch negative
June 9, 1998B+B----stable
August 13, 1998B-C----negative
August 17, 1998CCCC----negative
September 16, 1998CCC-C----negative
January 27, 1999SDSD----NM (not meaningful)
May 7, 1999SDSDCCCC--NM/stable
February 15, 2000SDSDCCC+C--NM/positive
July 27, 2000SDSDB-C--NM/stable
December 8, 2000B-CB-C--stable
June 28, 2001BBBB--stable
October 4, 2001BBBB--positive
December 19, 2001B+BB+B--stable
February 22, 2002B+BB+B--positive
July 26, 2002BB-BBB-B--stable
December 5, 2002BBBBB+B--stable
November 3, 2003 (rating affirmed)BBBBB+BruAA+-stable
January 27, 2004BB+BBBB-A-3ruAA+-stable
January 31, 2005BBB-A-3BBBA-3ruAAA-stable
November 1, 2005BBB-A-3BBBA-3-BBB-stable
November 3, 2005BBB-A-3BBBA-3-BBBstable
December 15, 2005BBBA-2BBB+A-2ruAAABBB+stable
September 4, 2006BBB+A-2A-A-2ruAAAA-stable
August 21, 2007 (rating affirmed)BBB+A-2A-A-2ruAAAA-stable
March 11, 2008BBB+A-2A-A-2-A-positive
September 19, 2008BBB+A-2A-A-2-A-stable
October 23, 2008BBB+A-2A-A-2-BBB+negative
December 8, 2008BBBA-3BBB+A-2-BBBnegative
December 21, 2009BBBA-3BBB+A-2ruAAABBBstable
June 27, 2012BBBA-2BBB+A-2ruAAABBBstable
December 13, 2013 (rating affirmed)BBBA-2BBB+A-2ruAAA-stable
March 21, 2014 (outlook revised, rating affirmed)BBBA-2BBB+A-2ruAAA-negative
April 25, 2014BBB-A-3BBBA-2ruAAABBB-negative
October 27, 2014 (rating affirmed)BBB-A-3BBBA-2ruAAA-negative
January 26, 2015BB+BBBB-A-3ruAAABB+negative
April 20, 2015 (rating affirmed)BB+BBBB-A-3ruAAA-negative
October 19, 2015 (rating affirmed)BB+BBBB-A-3--negative
February 17, 2016 (rating affirmed)BB+BBBB-A-3ruAAA-negative
March 18, 2016 (rating affirmed)BB+BBBB-A-3ruAAA-negative
September 16, 2016 (outlook changed)BB+BBBB-A-3ruAAA-stable
March 17, 2017 (outlook changed)BB+BBBB-A-3ruAAA-positive
September 15, 2017 (rating affirmed)BB+BBBB-A-3ruAAA-positive

Sources: Economics and Business department of the Roeters Island Library of the University of Amsterdam (1996-2012)[4], press-releases of S&P: November 3, 2003[5], January 27, 2004[6], January 31, 2005[7], December 15, 2005[8], September 4, 2006[9], August 21, 2007[10], June 27, 2012[11], December 13, 2013[12], March 21, 2014[13], April 25, 2014[14], October 27, 2014[15], January 26, 2015[16], April 20, 2015[17], October 19, 2015[18], February 17, 2016[19], March 18, 2016[20], September 16, 2016[21]., March 17, 2017[22],September 15, 2017[23].



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