Credit rating battle

Standard & Poor’s

They call this rating company Standard & Poor’s because if you are not rated on the Standard level of income, you are considered Poor. boohoo

Russia’s rating has been downgraded to something only above junk.

For that much account receivables from the Gazprom consumers, that rating has a funny ring to it. There is no other gas supplier in the world which owns that much money in accounts receivables. Besides, Russia do not deal with American financials lately.

Standard & Poor’s added that the rating will go up when the Ukraine tension descalates.

The Russian Central Bank increased its interest rate.

This would imply that the account receivables will increase its value further. Also Ukraine’s unpaid gas bill will also increase by the bigger interest. You broke it, you fix it.

It is still a wonder why Russia does not turn off the gas valves towards Europe.