Moody’s Improves Investment Outlook for Russian Banks to ‘Stable’

Moody’s expects Russian banks to post positive net profitability this year due to stabilization in global oil prices and government injections, according to report.

MOSCOW (Sputnik) — US credit rating agency Moody's has revised the investment outlook for Russian banks from negative to stable, in a report published Monday.

"Slow economic recovery and stabilisation of macroeconomic indicators in Russia will support the operating environment for Russian banks," the agency’s Vice President Irakli Pipia was quoted as saying in the press release.

Moody’s expects Russian banks to post positive net profitability this year due to stabilization in global oil prices and government injections.

On the downside, banks’ provisioning expenses are expected to remain high and asset equality will purportedly deteriorate, although at a lower rate.

The agency said it anticipated the government support for the largest banks to continue having a stable influence on the banking system, as evidenced by the central bank’s announcements and the government’s pledge to help sanctions-hit banks.

In recent years Russia's economy has suffered a slowdown due to a dramatic decline in oil prices and geopolitical tensions, including Western sanctions imposed on Moscow over the Ukrainian crisis.