Sanctions seen affecting Russia’s economic growth, not rating: Fitch

US sanctions will weigh on Russia’s economic growth but are unlikely to immenently deprive Moscow of its investment-grade rating, the head of Fitch Ratings Sovereigns group said yesterday. Concerns about more US sanctions against Russia have intensified in the past few months, even though risks of sanctions that could target new Russian government debt have been in place for around a year.

A year ago, Fitch said Russia’s sovereign rating would be one notch higher than its current BBB- level were it not for the latest round of US sanctions. One year on, that is still the case. “We think that sanctions are going to remain a risk and are going to weigh on Russia’ credit profile,” Erich Arispe, sovereigns’ and supranationals group director at Fitch, said in an interview in Moscow. (Read more….)