May 22, 2017 / 5:21 PM / 2 months ago

BRIEF-Moody's says Russia's credit profile reflects strong government, external finances amid credit challenges

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May 22 (Reuters) - Moody's :

* Moody's says Russia's credit profile reflects strong government and external finances amid a range of credit challenges

* Moodys says Russia's ba1 rating with stable outlook underpinned by strong government, external balance sheets, increasingly effective macro policy management

* Moody's says expects Russia's general government deficit to gdp ratio to decline in 2017-18 as result of fiscal consolidation and stronger revenue prospects

* Moody's says russia's economy entered a "recovery path" last year that will gain pace in 2017

* Russia's credit challenges include volatility related to economy's reliance on oil & gas exports, weak potential growth, underinvestment & "tense geopolitical environment"

* Moody's says ageing population is among constraints expected to prevent Russia's potential growth from expanding

* Moodys says despite significant negative impact from oil and gas price shock since mid-2014, russia's fiscal, debt metrics look favorable versus its rating peers

* Stress in Russia's banking system would also be negative because government needs stable source of domestic financing in order to fund its budget deficits

* Deterioration in domestic political environment resulted in expansion of existing sanctions or spurred revival of capital flight would be credit negative Source text : (

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