08:46 GMT +307 December 2019
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    Citibank Slams Moody's Downgrade of Russian Debt Rating

    © AFP 2019 / Emmanuel Dunand
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    Citibank does not agree with Moody's decision to lower Russia's bond rating, as the country is not projected to face a deep recession and political risks for investors are negligible.

    Citibank does not agree with Moody's decision to lower Russia's bond rating, the company's chief economist in Russia, Ivan Chakarov, announced on Wednesday.

    "We disagree with Moody's rating, which states that Russia's level is below investment-grade. Moody's chose a forecast that is too pessimistic and difficult to justify in the current situation," Chakarov said.

    The bank's economist added that Russia is not likely to face a financial collapse because of its positive trade balance and a sound fiscal situation.

    In addition, Citibank does not believe that there are political risks for foreign investors, as inflation is not projected to be at a critical level and unemployment growth is expected to be negligible.

    Moody's believes that Russia faces a profound recession in 2015, and the country's GDP can shrink by as much as 8.5 percent, whereas Citibank believes that GDP will shrink about 3.5 percent, and the crisis will not be as profound as that of 2009.

    Tags:
    economic recession, rating agency, credit rating, Moody’s, Citibank, Ivan Chakarov, Russia
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