S&P: Russian Federation 'BB+/B' and 'BBB-/A-3' ratings affirmed; outlook positive

S&P Global Ratings recently published their report on the Russian Federation with the key quotes, via Reuters, found below:

• Russian Federation 'BB+/B' and 'BBB-/A-3' ratings affirmed; outlook positive
• Ongoing recovery and post-election reform momentum could lift Russia's currently "low potential growth, despite sanctions and low oil prices" ‍
• Russia's banking sector is fragile, demonstrated by the recent failure of one of the largest private banks
• Russia's positive outlook indicates s&p may raise ratings if recovery in economic trend growth continues
• Russia's ratings supported by Russia's strong external, fiscal balance sheets, but remain constrained by assessment of Russia's economy
• Real GDP to likely increase by 1.8% in 2017, by average of 1.7% in 2017-2020, supported by rebound of oil prices, among other factors
• New U.S. sanctions bill is unlikely to undermine Russia's ongoing economic recovery in the short term
• Could take negative action on Russia's rating if efforts to maintain financial stability incur higher fiscal costs
• Could also take negative action on Russia's rating if efforts to maintain financial stability impair monetary policy credibility. effectiveness
• Russia's economic recovery to continue through 2020 after a two-year recession