Dagong Global Credit Rating Co., Ltd., China's leading rating agency, on Tuesday maintained both the local and foreign currency sovereign credit ratings for Russia as A.

It also rated the local and foreign currency sovereign credit of Iceland as BB and BB-, respectively.

Despite recent fluctuations, the export prices of oil will remain at high levels and help Russia stabilize its economic growth, achieve fiscal equilibrium and international balance of payment. It will also guarantee its current solvency, Dagong said.

Given the uncertainty of the external environment, Russia's fiscal strength is not strong enough and its ability to withstand the risks of global oil prices looks relatively weak, thus limiting the country from acquiring a better rating, Dagong said.

The Chinese rating agency expected the Russian economy to expand by 3.9 percent this year and 4 percent in 2013 due to the high oil prices, rising private consumption and accelerating fixed-asset investment in preparations for the 2014 Winter Olympic Games and the 2016 World Cup.

Boosted by its rich resources and an economic development strategy through diversification and creativity, Dagong said the Russian economy will grow 4.3 percent annually on average for the next decade with persistant inflation pressure

As for heavily indebted Iceland, Dagong said even though the economy is recovering due to its anti-crisis measures, the country's debt repayment ability in local and foreign currencies solvency is still facing challenges.

It said there were enormous risks among the banking sector and high levels of liabilities among the private sector.

Dagong expects Iceland's economy to expand by 2.1 percent in 2012, boosted by rebounding consumption and investment amid the government's counter-crisis measures. Endi

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