Still Expecting Credit Profile To Deteriorate

Our core views for Russia's political risk and credit profile remain in place on the back of credit ratings agency Fitch's move to downgrade the outlook on the country's BBB credit rating to 'stable' from 'positive'. While a failure to sufficiently quell ongoing protests does not pose a threat to our expectation for Vladimir Putin's return to the presidential post, it does increase the risk premium on Russian assets. As such, we still expect to see Russian 5-year US Dollar CDS to move higher.

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