S&P: Russia unchanged

Standard & Poor's said that the Russian government's plan to prepay debts owed to the Paris Club was not a credit event that would in itself lead to a change in the ratings on the sovereign.

The Russian Federation (foreign currency BBB/stable/A-2, local currency BBB+/stable/A-2, Russia national-scale AAA(ru)) previously announced that it had reached agreement on the prepayment of the remaining $22 billion of Soviet-era Paris Club debt, the agency noted, adding that in practice, however, the government's firm intention to repay the remaining Paris Club debt has been well known for some time now and the latest deal follows a similar transaction last year.

Although the sovereign gross debt ratio will fall following the prepayment, the government's assets held in its stabilization fund will fall by about the same amount, leaving Russia's net asset position almost unchanged, the agency noted.

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