Moody's assesses sustainability of Russia to external shocks

Experts of Agency Moody’s expressed the opinion that Russia is still more resistant to external shocks than most countries-exporters of oil.

Moody’s analyzed the consequences in case of continuation of the price collapse in the commodities market. The main advantage of Moscow is a significant foreign exchange reserves and a floating exchange rate of the national currency. Here, the experts take into account including a flexible exchange rate regime.

“Russia more resilient to external shocks than most oil exporters, given its flexible exchange rate regime and large foreign exchange reserves,” analysts say.

among the features of the countries able to withstand the oncoming storm, they note the ability to increase production even in low price conditions, as well as the possibility of reducing costs, demonstrated in 2015-2016.

Margin, Moody’s assessment is, in addition to Russia, which is Baaa3 rating with a stable Outlook, Qatar (Aa3), Azerbaijan (Ba2), Kazakhstan (Baa3) and Saudi Arabia (A1). Plays in their favor the good state budget (Russia has begun the year with a surplus), its resistance to falling oil prices. In addition, according to analysts, these countries may engage in currency devaluation.

But under attack in the first place are Oman, Bahrain, Iraq and Angola. In the rating Agency believe that these countries not just to adapt to the shock in the oil market.