S&P blames Russia for lack of progress in law and other reforms. An increase in FX reserves and short cut of government debt could create necessary prerequisites for upgrading Russia’s credit rating to investment grade. Yet, the lack of progress in law reform as well as other reforms is an essential obstacle to rating upgrade, S&P managing director Scott Bugie said.
According to him, Russia’s sovereign credit rating has a stable forecast. It precisely represents the current situation. S&P waits not the completion of the structure reforms, but rather moves in the right direction. S&P underlines positive changes in the law system.
However, unexpected ill-founded decisions are taken sometimes. Moreover, state’s interference in the economy is a destabilizing factor in many cases. S&P watches closely the energy-sector reform, the transportation infrastructure reform and others.