Russia gets its own Rating Firm – ACRA


Posted on:21 Mar 2016 09:14:50

Russia gets its own Rating Firm – ACRA
21 March 2016 Current Affairs: Vladimir Putin’s homegrown credit-ratings firm is up and running and foreign competitors are already feeling the heat. Moody’s last week announced it would shutter its joint venture in Moscow of 12 years and Fitch said it will probably stop issuing local ratings on Russian companies, the same day ACRA, which stands for Analytical Credit Rating Agency, applied for a license to operate in Russia.In the past three weeks, Moody’s Investors Service Inc. and Fitch Ratings Ltd. have said they plan to stop issuing local ratings rather than agree to having their Moscow branches regulated by the Russian government at the cost of breaking international sanctions. Russia is squeezing the business of foreign-ratings assessors since downgrades it condemned as politically motivated last year pushed the sovereign below investment grade for the first time in more than a decade.The Bank of Russia announced plans to start a company immune to “geopolitical risks” in July after S&P and Moody’s cut Russia’s rating to junk amid a slump in oil prices and sanctions imposed over Ukraine.ACRA’s board is headed by an American, Karl Johansson, who advised the Russian government while at Ernst & Young LLP in Moscow. Ekaterina Trofimova, a former banking analyst for Russia and former Soviet states at S&P, will run the new venture.Twenty-seven shareholders, including Sberbank, Raiffeisenbank and Severstal PAO among others, will each have 3.7 percent of 3 billion rubles ($44 million) of the authorized capital.


Subscribe to Current Affairs

Enter your email to get daily current affairs

Current Affairs June 2017

23 JUNE
NEWS
22 JUNE
NEWS
21 JUNE
NEWS
20 JUNE
NEWS

Current Affairs May 2017

31 MAY
NEWS
30 MAY
NEWS
29 MAY
NEWS
27 MAY
NEWS

Current Affairs April 2017

29 APRIL
NEWS
28 APRIL
NEWS
27 APRIL
NEWS
26 APRIL
NEWS