Fitch Lowers Russia's Outlook to 'Negative'
On Friday the Fitch rating agency lowered its outlook on the Russia economy to 'Negative' from 'Stable', citing the potential impact of the sanctions.
The agency confirmed Russia's “BBB” rating.
“The revision of the outlook to negative reflects the potential impact of sanctions on Russia’s economy and business environment,” Fitch said in a statement.
“Since US and EU banks and investors may well be reluctant to lend to Russia under the current circumstances, the economy may slow further and the private sector may require official support,” it said.
Fitch’s move followed a decision by Standard & Poor’s to change its outlook on Russia to negative. Both companies affirmed Russia's ranking at BBB, the second-lowest investment grade.
- » Reuters: Bulgaria Picks 2 Local, 2 Int'l Banks for Bridge Loan
- » EU Commission Allows Bulgaria to Use EU Funds for Sofia Tech Park
- » Holders of Guaranteed Deposits in Bulgaria's KTB Number 255 000
- » State Aid to FIB in Line with EU Rules, Commission Says
- » Finance Ministry To Present Draft Budget Report
- » Finance Ministry Reopens 7-Year Issue of EUR-Denominated Govt Securities
you do have a point here. Russia has a GDP not much above the level of Holland. If Russia would default, it would affect the markets but for the rest of the world it wouldn't be the end, just another unpleasantness with which they have to deal. Oil and gas can be bought from other countries which would lead to a hike in the prices but Russia would collapse very quickly after a boycott since they have nothing except oil and gas. No industry, no service sector, no infrastructure, no research facilities (outside the outdated military-industrial complex), with around 100 million Chinese already squatting in Siberia and waiting to take over. And if they would lock the accounts in Lonongrad, the lights would go out very quickly in the New soviet Union.
Russia is in dire straits and Putin's move on the Crimea and the mobilization of nationalist feelings by a media for which the word "gleichgeschaltet" comes to mind is a desperate last move to protect his power. He will politically not survive the next two years (and if I am wrong it would be a big disaster for Russia).
I will ignore the insults and reply for other people who might become confused by your knowledge.
What I am saying is Russia could default on it's European/ USA loans.
Since master and visa cards are already blocked ... travelling Russian would only support such actions.
Those defaults will barely have an impact on Russia. They are still selling gas and oil and plenty of buyers in China and India.
European banks are so fragile even a bird defaulting on its nest could be extremely harmful.
Gas, you do know Russia is a neighbour of China? You do know Chinese don't really like muslim states, especially not when they are serving USA.
And this is not a tale, they really are going to announce this and sign the documents on Putin's next visit to China. They probably will also have talks for increasing oil deliveries since the new Russian crude variant is mastering all other available in the world.
Russians do not need Europeans for gas, Europe does need Russian gas.
If the Israelis want to help deliver gas to Greece that is good for them. But I don't think Bulgaria will be interested very much unless they offer the same discounts as Russia... Which would be a spike in ROI I guess.
Even Turkey loves Russian gas and oil. In fact, most booming economies in the world prefer Russian gas and oil. Better, cheaper and a partner which is more reliable.
If Russia can't afford this games then they are surely on the way to destruction. However, it does not seem to scare them a bit and considering they decided what happened in Syria and overruled USA it does look like someone else has bad cards in their hands.
"Question is, who will bail the European banks out after Russia defaults on their loans.."
Hey Dodo head, do you have even the most basic grasp of economics? You are saying that Russia would default on its loans? Do you think Russia is so stupid to do something like that, and shut itself out from the international financial system forever, what fucking world do you live in ? In a cave?
Don't you think the Russian middle class likes to travel, buy goods abroad, have a decent life? Defaulting on their loans would destroy the country asshole and it would hardly hurt European banks, Russia's economy is barely bigger than Italy's. So it would be like Mexico in '94, did that collapse the US banks? What a fucking idiot you are.
As for the natural gas stop saying pure idiocy....Russia cannot divert competitively to Asia asswipe, Qatar has that market completely cornered now that the US is energy independent with its shale gas and the Russkies are not about to get into a price war with Qatar they can't win and sell their gas 50% lower than they would to the Europeans...Qatar spent billions increasing its capacity and now that it can't sell to America is selling to the Chinks at a very competitive rate.
Also idiot, realize that the Israelis are rapidly bringing their gas online and just yesterday were in talks with Greece to start the interconnection via Cyprus. This is imminent and will create significant competition to the Russkies in the Euro gas market.
Russia can't afford to play games with its shaky economy. Today Rossia bank cards became worthless as Visa and Mastercard no longer work in their system. It goes completely against Russia to continue this stupid belligerent path that will dig it into a hole it won't be able to dig itself out of.
READ before you write stupidities and nonsense.
Nothing to bail out in Russia.
Question is, who will bail the European banks out after Russia defaults on their loans...
Russia is going to announce one of the next days/weeks/months a huge cooperation with China for delivering gas. Should be fully working in 2018.
The question rises, where will Europe get their gas from? I bet that pipeline through Arabic countries will supply them stable deliveries. But then one needs to know that that pipeline will not be completed before 2020, and that is a very optimistic estimate...
"You think you can invade countries"---oh, yes, Yougoslavia/Serbia, Irak, Afghan...but it's not Russian "deeds".
"...open military bases abroad"---more than 800 bases, yes.....but, again, it's not about Russia:
"spend heavility on your military"---yes, more than US$ 550bln, but it is USA military budjet (Russia: US$70bln)
"Your GDP is smaller than Italy's"---? If nominal GDP, then Russia is far higher.
"you are Russia and not the USA" !!!---exactly! Be happy to lick the BBB (BigBossBarak) a*se. Russia will
never harm You and Your obedient licking.
The fun now begins! Bye bye Russia!
You think you can invade countries, open military bases abroad, spend heavility on your military........there's just a slight problem..you are Russia and not the USA.....Your GDP is smaller than Italy's....Your country grew 1% last year and will grow 0% this year and the only thing you produce is sadly oil & gas.
It was nice seeing your megalomania Mr. Putin, but thankfully your downfall has already begun...And we will all be laughing to the bank when you finally collapse arrogant motherfu**er.
Let's see who will bail you out when your economy collapses....Kazakhstan?