Moody’s withdrew all national ratings in Russia

A subsidiary of international rating Agency Moody’s Investors Service, “Moody’s Interfax” — withdrew on March 18, all ratings on the national scale that were set to approximately 150 Russian issuers, including the largest banks and companies. This is stated in the message Moody’s, which has been made available to RBC.

About the decision of Moody’s to withdraw national ratings in Russia, the Agency reported on 9 March. Then it was noted that the decision was due to legislative changes and other potential restrictions on business for assigned national scale ratings in Russia.

In particular, the Agency noted that “the expected requirements for structural and operational independence of the limit, “Moody’s Interfax” in its capacity to leverage global resources Moody’s”.

At the same time Moody’s noted that the decision to withdraw the ratings on the national scale will not affect the rating Agency’s global scale.

In 2017 in Russia comes into force a law that obliges foreign rating agencies working in Russia or through subsidiaries and to assign to the international rankings or to create in Russia its subsidiary, which assigns national ratings and will comply with the new requirements of the Russian legislation.

The international Agency Fitch Ratings has not ruled out that it will stop to assign ratings in Russia on a national scale. As he wrote RBC, this means that Fitch likely will not create a Russian “daughter” instead of the current branch of the Agency.

It’s possible that assigning national ratings and the creation of its subsidiary in Russia will also refuse and S&P. About it RBC was told by a source close to the Bank of Russia and confirmed by a source close to the Agency itself.

Moody’s and the Interfax Agency cooperated in the field of ranking in Russia for the past 12 years. Since 2004, Moody’s owns 51% of the capital, “Moody’s Interfax”, the remaining 49% are owned by “Interfax”.