Moody’s Investors Service, shortly known as Moody’s, issued its first rating for Russia this year. The new rating is a good one, as the agency changed the government bond rating from negative to stable. Moody’s also confirmed the government bond rating and issuer at Ba1. Fiscal consolidation is the main reason based on which the agency has changed its rating. Our law firm in Russia can offer information on what the rating means for the country’s economy.
The medium-term fiscal consolidation seems to be at the base of Moody’s change related to Russia’s government bond to Ba1 with a stable outlook. This consolidation is expected to trigger other positive results, such as a lower dependence on the oil and gas industry and to lead to further economic increase. However, the agency noted that Russia had already started recovering after the local economic crisis two years ago. Moody’s acknowledged its new rating based on the fact that Russia also has “healthy fiscal and external positions” compared to other countries depending on oil and gas.
Foreign investors interested in starting a business in this country, can rely on our lawyers in Russia.
Moody’s revised its outlook from negative to stable due to the country’s economic recovery, however the credit rating agency noted that this recovery is slow compared to other country. Even so, it is constant which a good sign for Russia and for foreign investors interested in doing business here.
Russia occupies the 13th position among the global economies and is also the 5th largest economies in Europe. Also, Russian citizens’ wealth is above the average which is another good sign of economic recovery.
The corporate tax reforms, changes in the pension system and an improvement of the investment climate would help Russia receive better ratings in the future, according to Moody’s. These are reforms the government is working on, the first step being the reduced timeframe for company registration which was enabled at the beginning of the year.
For full information on the latest changes meant to help foreign investors in the country, please contact our Russian lawyers.
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