"Moody's forecasts that real GDP growth will increase by 1.5 percent per year in 2017 and 2018," the release stated.
Moody’s Senior Vice President Kristin Lindow noted that Russia’s economic recovery, led by effective micro policy management, has helped it contain the impact of low oil and gas prices.
GDP growth will be led by gains in household and real incomes and easing monetary policy, according to the release.
Stress on the banking system or material weakening in the country’s capacity to absorb shocks could put negative pressure on Russia’s credit rating, while positive pressure would come from additional government reforms that increase economic diversity and productivity.
Moody’s noted that domestic or regional political issues that result in new sanctions or capital flight from the country would also be credit negative.