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Thread: Credit rating agencies leave Russia

  1. #1
    The Un-Holy One The Man's Avatar
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    Credit rating agencies leave Russia

    MOSCOW (Reuters) - Russia began relying only on its own rating agencies to manage its domestic bond market on Friday after the world's top three credit rating agencies quit that market, leaving investors pondering the credibility of the local agencies.

    Standard & Poor's, Fitch and Moody's have all withdrawn from Russian domestic ratings, refusing to comply with legislation drawn up in 2014 when they downgraded Russia after the annexation of Crimea.

    Russia says the legislation is designed to prevent rating agencies from withdrawing local ratings under external political pressure, while the agencies see it as a restriction on their work.

    The withdrawal of the big three will leave ACRA, a new Kremlin-backed ratings agency promoted by the central bank, and Expert RA, a veteran of Russia's domestic rating industry, as the only agencies able to assess Russian debt.

    Investors, who must rely on the ratings of ACRA and Expert RA from July 14, say they are struggling to believe domestically produced ratings will be of the same standard as international ones.

    "The central bank organized a rating revolution. If funds won't be able to keep bonds due to rating requirements, they will sell these bonds," the head of a Moscow-based fund manager said.

    He added that not all issuers in Russia's 1 trillion rouble ($17 billion) corporate bond market had managed to get an ACRA rating in time for the July 14 deadline, leaving them without any credit rating.

    Banks are concerned about the rating overhaul as it affects their ability to borrow from the central bank.

    Credit ratings are also relied on by investors to decide whether to hold a company's bonds or enter into other transactions with them. Some investors only deal with firms that carry a credit rating above a certain level, so if a company carries no rating or is judged to be rated by unreliable agencies it can lose access to potential investment funds.

    Russian pension funds are likely to find it particularly difficult to invest in bonds if the new rating arrangements stay as they are, market sources said.
    More: Investors cautious as Russia enters new ratings era

    Bloody hell...

  2. #2
    Veteran Member Dr.Knuckles's Avatar
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    I have a deep envy for young people who know what they want to be. I was in my mid 30's and still didn't know.

    The Man, from what I know of CBSA you go where they send you. At least until you've paid your dues and competed for the big city jobs. You might end up at the Alaska border, or some God forsaken Manitoba town looking for thawed out refugee fingers in the Spring for a bit.

    If your nephew has questions about his field, I could forward them to the guys who know. I'm not that guy myself, but I can email them any general questions.
    Thanks from The Man

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    The Un-Holy One The Man's Avatar
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    Quote Originally Posted by Dr.Knuckles View Post
    I have a deep envy for young people who know what they want to be. I was in my mid 30's and still didn't know.

    The Man, from what I know of CBSA you go where they send you. At least until you've paid your dues and competed for the big city jobs. You might end up at the Alaska border, or some God forsaken Manitoba town looking for thawed out refugee fingers in the Spring for a bit.

    If your nephew has questions about his field, I could forward them to the guys who know. I'm not that guy myself, but I can email them any general questions.
    Thanks a lot. Will keep in mind

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    Veteran Member Dr.Knuckles's Avatar
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    Question 1: Legal authority to grab pussy under new NAFTA?

    Answer: Maybe.
    Thanks from The Man

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    Veteran Member Dr.Knuckles's Avatar
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    All time conversation stopper.

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