...Liquidity Sources Limited: Russian corporate liquidity remains under pressure from sanctions and the lower availability of foreign bond and bank funding. Eurobond markets are effectively closed and foreign bank financing is extremely tight for most issuers. Limited evidence suggests that some borrowers are able to roll over foreign bank lines but new lending is scarce. Reliance on Domestic Banks/State: Large and mainly state-related domestic banks will be the key funding source for local corporates, although banks themselves will rely on the state/Central Bank of Russia (CBR) for funding and capital to maintain their lending capacity. Banks will also probably return to their role of being the largest buyers of domestic corporate bonds if and when the domestic bond market thaws. FX to the Fore: Fitch Ratings' 2015 liquidity study tests the ability of Russian non-financial corporates to withstand funding pressures in the new environment of a contracting economy and a weak rouble at an assumed...
