The largest rating agency Standard & Poor’s published information that according to their calculations, the banks of the Russian Federation among financial institutions in the biggest developing countries are the most vulnerable in the light of the slowdown in global economic growth. This is primarily due to the imposed sanctions on Russia by the European Union and the United States.
In their review, the Standard & Poor’s specialists point out that measures against the Kremlin directly affect more than half of the assets of the country’s entire banking sector. It is related to the limited access to capital markets and financial institutions in America and Europe.
Though, at the end of last month, contrary to the expectations of a number of experts the Standard & Poor’s rating agency did not degrade the sovereign rating of the Russian Federation. The experts have kept it at a value of “BBB-” with “negative” outlook. Various financial analysts predicted that the rating could be cut simultaneously by two levels. However, if the situation does not change, then certainly it can still be revised downward, because at this time no good prospects for Russia are observed.
Besides Russia, the Agency had in its review some other states. Thus, the experts have recorded high economic risks for the banking sector of the People’s Republic of China and India. First of all, it is due to the low quality of assets. The Agency also noted the slow stabilization in the banking sector of South Africa, Turkey and Brazil.