For the first time in history Russia has found itself on the list of the countries that may face serious problems in paying their state debt, a research by Credit Market Analysis said.
The probability of Moscow’s inability to pay its debt on government bonds on time during the forthcoming five years is evaluated at 14.5 percent (1.45 to 10). Russia takes the tenth position with this index on the list, RBC Daily said.
Ukraine comes first with 53.7 percent with Venezuela and Argentina making the top three. In addition to the Russian Federation and Ukraine, the top ten list of most default-prone states includes three other countries of the former Soviet Union – Kazakhstan, Latvia and Lithuania. Dubai, Iceland and Lebanon add the list of record debtors.
Russia has one advantage to other members of the top ten list – the rating. According to CMA, Russia has the bbb rating, whereas the rating with other countries does not exceed b – the speculative and apt to reduction.
Ukraine holds the worst rating on the list. Its CC means that Kiev will have to declare default sooner or later.
As for the debts with safe investment opportunity, the leaders still remain the same – Norway and Finland. The USA appears on the third place, having jumped two places up.
Germany and France close the top five. European countries continue the list – the Netherlands, Denmark and Belgium. Australia and New Zealand share the seventh and the tenth position as the best debtors in the world.