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. Last Updated: 07/27/2016

S&P Sees Improved Stability, Ratings

RIGA, Latvia -- International ratings agency Standard & Poor's said Friday Russia's political and economic instability had passed its worst and should begin to stabilize, but a sovereign rating upgrade depended on settling London Club debt issues.

"The general country rating is SD [selective default] and these debt issues in default need to be resolved before we address the general country rating," said George Dallas, managing director of Global Emerging Markets S&P, during a Baltic business conference.

"To the extent that Russia is successful at renegotiating this London Club deal, and some other debt ... we would hope that at the very minimum Russia's general country rating would be at the CCC+ [level] and perhaps there could be scope for looking at something slightly higher."

The new government looks promising at the outset, but needs to establish a clear track record before it can repair the country's damaged reputation with investors, he said.