Moody's downgraded ratings of Moscow and St. Petersburg
Following the downgrade of Russia's sovereign credit rating, the rating agency Moody's downgraded the ratings of a number of Russian regions, including Moscow and St. Petersburg, by one notch. The rating action is due to the deterioration of the country's credit rating, according to the agency's website. In total, Moody's downgraded the credit ratings of 17 Russian cities and regions. Moscow's rating was downgraded from Baa2 to Baa3 with a negative outlook; the rating of St. Petersburg also dropped to Baa3 (negative outlook).
The ratings rationale indicates a strong institutional relationship with the federal government and their lack of special status, which prevents them from having ratings that exceed sovereign ones. The ratings of the Omsk, Nizhny Novgorod, Samara regions, the republics of Chuvashia and Tatarstan, the Khanty-Mansiysk Autonomous Okrug and a number of other cities and regions were also lowered.
20 in January Moody`s downgraded the ratings of the largest Russian companies, including Gazprom, Transneft, Lukoil and Rosneft. On January 17, the agency lowered the rating of Russian government bonds to Baa3 / Prime 3. The agency believes that the Russian economy will be adversely affected by a sharp drop in oil prices.
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