“Rapid growth in spending has already widened Russia's non-oil and gas fiscal deficit to 10 percent of GDP, and pushed up the fiscal breakeven oil price to around $117/barrel for 2012. We have previously said that a failure to make progress in reducing the non-oil and gas fiscal deficit back down towards its pre-crisis target of 4.7 percent is one of the factors constraining Russia's rating at BBB,” the statement said.
Mickey Mouse credit rating agencies at it again. Note that in the above statement they are talking about some contrived "non-oil and gas" deficit, when the actual deficit is much smaller. Yeah, a country with a sovereign foreign debt of $36 billion (http://en.rian.ru/business/20120301/171671096.html) or 2% of GDP is a real risk. According to these clowns Russia has the same level of risk as Ireland (also BBB) and its imploded housing bubble. The sovereign debt of Ireland is about $142 billion (http://www.economicshelp.org/blog/3118/ ... onal-debt/) or 105% of GDP.
Fitch did not downgrade the US credit rating when the real deficit (not some BS number) exceeded 10% of GDP. Also, Fitch expects oil and gas prices to collapse apparently. Does Fitch expect a global depression that will outclass the 1930s? Not bloody likely.