| JRL HOME | SUPPORT | SUBSCRIBE | RESEARCH & ANALYTICAL SUPPLEMENT | |
Old Saint Basil's Cathedral in MoscowJohnson's Russia List title and scenes of Saint Petersburg
Excerpts from the JRL E-Mail Community :: Founded and Edited by David Johnson

#7 - JRL 8240 - JRL Home
Russian Deputy PM Zhukov hopes other leading rating agencies will follow Moody's in assigning investment rating to Russia

MOSCOW. June 5 (Interfax) - The Russian government hopes that leading rating agencies will follow the example of Moody's Investors Service and assign Russia an investment credit rating, Deputy Prime Minister Alexander Zhukov said at a meeting with Chairman and CEO of Moody's Corporation John Rutherford in Moscow on Friday. "Moody's was the first among the three leading world agencies to give Russia this rating," Zhukov said. He added that he is sure that Moody's "will not be disappointed after assessing the condition of the Russian economy this way." A source in Zhukov's office told Interfax that the economic situation in Russia and prospects for further economic reforms were discussed at the meeting. Zhukov said that in the first five months of 2004, Russia's GDP grew by 8%, and the government is determined to keep inflation within 10% in 2004.

The negotiators addressed measures Russia is taking to maintain the high economic growth rate and increase the living standard.

Given political stability and a favorable economic situation, the Russian government has the opportunity to accelerate structural reforms, Zhukov said.

The deputy prime minister pointed to the importance of new bills that the Russian parliament is considering, among them those designed to reduce the tax burden on the Russian companies and replace privileges to certain categories of the population with monetary compensations. These measures, Zhukov said, should make the Russian economy even stronger and increase the people's living standard.

Rutherford informed Zhukov about Moody's' plans to expand its activity on the Russian market. In particular, he said the agency will further develop cooperation with Interfax Group, especially its branch, Interfax Rating Agency, which has lasted several years. Zhukov praised this cooperation, noting that Interfax is "one of the most authoritative agencies in Russia."

The deputy prime minister said he hopes Interfax Rating Agency "will be as authoritative" as Interfax's information service.

Interfax Chairman and CEO Mikhail Komissar also took part in Zhukov's meeting with Rutherford.

Moody's is so far the first global rating agency to upgrade Russia's long-term currency rating to Ba2 from Baa3 in October 2003.

The other two leading rating agencies, Standard&Poor's and Fitch, currently keep Russia one notch below the investment rating.

A team of Moody's analysts is working in Moscow this week. Moody's Investors Service Vice President Jonathan Schiffer told Interfax that the mission is not related to Russia's sovereign rating but to the assigning of a corporate rating to one of the Russian companies.