Russian Markets Have Worst Week Since Crimea as S&P Cuts Rating - Bloomberg

Russian Markets Have Worst Week Since Crimea as S&P Cuts Rating - Bloomberg:



"Russian bonds and stocks suffered their worst weekly rout since mid-March as the truce forged to ease tension in eastern Ukraine unraveled, fueling concern that President Vladimir Putin faces stiffer international sanctions.



Benchmark ruble bond yields climbed to the highest since March 14, prompting the Finance Ministry to abort plans to return to the local debt market on April 23, two days before Standard & Poor’s cut Russia’s credit rating to one level above junk. The central bank’s surprise half-point interest-rate increase yesterday failed to stem the ruble’s weekly retreat, the biggest among 24 emerging markets after South Africa’s rand.




“The past few days have been particularly painful for Russian fixed income,” Benoit Anne, the London-based head of emerging-market strategy at Societe Generale SA, said by e-mail yesterday. The failed debt auction “badly damaged investor confidence. In addition, the geo-political situation continues to deteriorate with a war of words and a tougher rhetoric employed between various parties,” he said."



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