S&P affirms Russia's rating at 'BBB-/A-3' with stable outlook

BY Reuters | CORPORATE | 01/15/21 04:16 PM EST

Jan 15 (Reuters) - Credit rating agency S&P Global Ratings on Friday affirmed Russia's rating at 'BBB-/A-3' with a stable outlook, reiterating that the country's strong balance sheets could offset potential risks posed by the COVID-19 pandemic and U.S. sanctions.

Russia is rated investment grade by the three major rating agencies, including Moody's and Fitch, which helped Moscow borrow money on global markets by issuing Eurobonds in 2020.

Still, Western sanctions are seen constraining Russia's credit rating and hampering its efforts to achieve higher rates of economic growth. (Reporting by Yajush Gupta in Bengaluru; Editing by Devika Syamnath)

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article