: Bloomberg: Vladimir Putin starts his own ratings firm

09:40 Mar. 18, 2016

Bloomberg: Vladimir Putin starts his own ratings firm

Russian President Vladimir Putin walks in Moscow's Kremlin, Russia, March 17, 2016 (AP Photo)

Kremlin had condemned barrage of downgrades as political

Vladimir Putin's homegrown credit-ratings firm is up and running and foreign competitors are already feeling the heat.

Watch also Russian President orders army to withdraw from Syria

In the past three weeks, Moody's Investors Service Inc. and Fitch Ratings Ltd. have said they plan to stop issuing local ratings rather than agree to having their Moscow branches regulated by the Russian government at the cost of breaking international sanctions.

As the New York-based firms scale back, the venture known as ACRA is poised to fill the void when it starts publishing opinions in the second half.

Watch also #DUTCHINUA: 'People should understand, 'No-vote' would mean support for Putin'

Russia is squeezing the business of foreign-ratings assessors since downgrades it condemned as politically motivated last year pushed the sovereign below investment grade for the first time in more than a decade. The finance ministry and central bank plan to use ACRA to replace the so-called big three as their yardstick to measure credit quality of investments.

"Cutting off international agencies from national ratings, the state is protecting the local provider," said Ivan Guminov, chief fund manager at Ronin Trust in Moscow. "Until this moment all important ratings were provided by big three and a new local player would have had a hard time to conquer a share on this market if it had to compete with them." Full story

comments powered by Disqus

RELATED NEWS

News15:21 Dec. 29, 2016
The projects we loved
News13:49 Dec. 25, 2016
Russian plane heading to Syria crashed in the Black Sea (UPDATE)
News11:20 Dec. 23, 2016
Death toll from 'Boyaryshnik' intoxication reaches 74 in Russia
News14:28 Dec. 16, 2016
How expensive is Syrian war for Russia?
News15:27 Dec. 4, 2016
Shootout during a Spec Op: 5 policemen dead
Ukraine Today WEEKLY DIGEST
Subscribe to receive regular email updates about Ukraine and Eastern Europe
vk154998