July 17. Russian companies could boost borrowings on external markets at lower cost after Moody’s has upgraded the credit rating of the Russian Federation, believes Deputy Finance Minister Dmitry Pankin. “This will help Russian enterprises to enter foreign debt markets”, he told Interfax-AFI. The Deputy Minister noted that large companies are already capable of entering external debt markets, while it is more difficult for mid-sized enterprises to raise money. “However, this issue refers to that fact that Western banks and financial institutions amid financial instability automatically close limits for companies in countries with lower rating rather than increased risks of Russian enterprises” – Pankin said. According to him, the rating upgrade will enable Russian companies to maximize work with Western financial institutions and it will be easier for them to raise funds, since Western banks will increase their limits for Russia. “The rating upgrade paves the way toward raising funds for more Russian enterprises”, Pankin said. He added that for all the domestic companies the rating upgrade means narrower spread between LIBOR and the rate at which a Russian borrower can raise funds. He believes that there are grounds to expect the rating upgrade by other rating agencies as well.