Russia’s Credit Rating Hinges on Tougher Sanctions

Possible sanctions attract the attention of credit analysts.

Russia’s credit outlook could be adversely affected by specific Western sanctions, in the event of a failure to defuse the crisis over Ukraine, says Levon Kameryan, Senior Analyst, Sovereign and Public Sector Ratings, and looks at the cumulative impact of existing and potentially stronger future sanctions, a concern for the country’s credit outlook: “A comprehensive package of sanctions has the potential to disrupt Russian exports,” writes Levon Kameryan, “further discourage foreign and domestic investment, which the country needs for sustainable economic growth, and push up government borrowing costs – at least at the margin.”