Russia setting up ratings company

Moscow

RUSSIA is creating its own ratings company to withstand "geopolitical risks" after two of the three biggest credit assessors downgraded the country to junk status this year.

Ekaterina Trofimova, OAO Gazprombank's first vice-president and a former banking analyst for Russia and former Soviet states at Standard & Poor's in Paris, will head the company, which plans to start operations next quarter. It will have 3 billion roubles (S$70.3 million) in capital and will be funded by banks, insurance companies and asset managers, the central bank said on Friday on its website. Shares will be distributed on a pro-rata basis and no investor will hold a stake exceeding 5 per cent.