Deputy Prime Minister Dvorkovich: Russia’s downgrade to junk status would be “big mistake”

Russia’s downgrade to junk status would be a “big mistake,” Russian Deputy Prime Minister Arkady Dvorkovich told Bloomberg TV channel at the World Economic Forum’s annual meeting in Davos, Switzerland on Wednesday.

“It would be a big mistake. Russian public debt is very low, Russian public finances are stable and there is no risk of defaulting on the financial commitments. I think it’s the overall perception of risks and uncertainty towards Russia, but not really within Russia,” Dvorkovich said.

The international rating agency Fitch announced on January 10 it had downgraded Russia’s long-term rating to BBB-from BBB, just one notch above the speculative level. "The economic outlook has deteriorated significantly since mid-2014, following sharp falls in the oil price and the ruble, coupled with a steep rise in interest rates," Fitch’s statement said. The move to downgrade Russia’s sovereign rating may be followed by S&P and Moody’s.