By Marcus Williams.
Global ratings agency Standard and Poor‘s yesterday warned that “an ambiguous succession process” leading up to next year’s elections was adding risks to a centrally managed economy.
S&P affirmed Russia’s BBB long-term foreign currency sovereign rating and A-3 short-term rating with a stable outlook.
However, the agency damned Russia’s current election process, which generates “political uncertainty stemming from an ambiguous succession process for the presidency and weak checks and balances between institutions.”
S&P said it expected the March 2012 vote to be decided between President Dmitry Medvedev and Prime Minister Vladimir Putin “once they decide which of them” should run.
Capital flight from Russia has already accelerated this year in advance of the elections as the wealthy have become increasingly jittery about the outcome.
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