RGE analysts write:
S&P downgraded Russia's sovereign bonds to BBB, the second lowest investment grade ranking from BBB+ citing the rapid depletion of Russia's reserves which have fallen 25% since early August and high levels of fiscal spending. It suggested Russia's current account would be in deficit of 2.6% of gross domestic product in 2009, compared with a surplus of 5 percent in 2008 as its terms of trade deteriorate. Other ratings agencies will likely follow suit
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