S&P lifts Russia short-term rating to A-2

Standard & Poor's said it affirmed the BBB long-term foreign-currency sovereign credit rating and its BBB+/A-2 long- and short-term local-currency sovereign credit ratings on the Russian Federation.

S&P also raised the short-term foreign-currency credit rating to A-2 from A-3.

The outlook is stable.

The agency also said it affirmed the ruAAA Russia national scale rating. The transfer and convertibility assessment on Russia remains at BBB.

The ratings reflect the Russian government's slight net asset position, which reflects previous fiscal surpluses and currently moderate deficits, S&P said, as well as the economy's slight net external asset position with liquid external assets exceeding the economy's gross external debt.

The ratings remain constrained by structural weaknesses in Russia's economy, in particular strong dependence on hydrocarbons and other commodities, the agency said, and by weak political and economic institutions that impede the economy's competitiveness.

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