Russia’s Corruption Hampers Growth, Rating, Moody’s Says

Russia’s low debt and deficit levels are insufficient to win the country its first credit-rating upgrade in almost five years because of corruption and weak rule of law, Moody’s Investors Service said.

“With respect to the post-crisis growth potential, it’s clearly constrained by a weak rule of law and the high corruption levels,” Dietmar Hornung, a Frankfurt-based analyst for Moody’s, said in a phone interview today. “We appreciate that Russia’s fiscal and external debt metrics look favorable compared to other countries in the Baa rating category.”