Russia Secures First International Sovereign Credit Rating Since Special Military Operation Start

China Chengxin International Credit Rating (CCXI), one of China's most venerable credit agencies founded in 1992, has upgraded Russia’s sovereign credit rating from BBB- to BBB+, marking the first such international assessment since the onset of the military conflict in Ukraine, reports RBC.

Prior to hostilities, Russia’s rating stood at BBB-. Following 2022, CCXI initially downgraded it to BB- and subsequently withdrew the rating altogether. The new BBB+ designation is considered stable, indicating a moderate level of economic and financial resilience alongside an average risk of default.

According to the agency’s rationale, Russia’s economy continues to demonstrate resilience amidst external shocks. Its capacity to service external debt is supported by prudent financial and monetary policies, substantial international reserves, and the National Wealth Fund (NWF). CCXI also highlighted the country’s low public debt levels and the full, timely fulfillment of its obligations.

Looking ahead, the agency anticipates modest inflation slowdown and moderate economic growth in Russia by 2025, influenced by the Central Bank’s high interest rates.

CCXI remains one of China’s oldest rating agencies, and in June 2023, its General Director, Yan Yan, announced preparations for assigning a national credit rating to Russia. She stated that agency officials had engaged with representatives from the Russian Central Bank and Ministry of Finance to clarify various issues, including the decreasing reliance on the US dollar in settlement calculations.