Ruble Drops Second Week as Credit Risk Rises Before Fitch Review - Bloomberg:
"The ruble fell for a second week, Russia’s credit risk climbed to a five-year high and Eurobonds declined amid speculation Fitch Ratings will lower the country’s ranking as early as today.
The currency weakened 2.5 percent to 61.84 against the dollar at 7:45 p.m. in Moscow, sliding 5 percent since the close in offshore trading on Jan. 2. The cost to insure Russian debt against default traded near the highest since 2009 and the yield on dollar bonds due September 2023 rose 14 basis points to 7.14 percent.
Russia’s investment-grade status is under threat after the price of oil, the nation’s main export earner, more than halved in value since June and sanctions over the conflict in Ukraine tipped the economy toward a recession. While Societe Generale SA said Fitch will probably cut by one step today, Standard & Poor’s signaled last month it may drop the country below investment grade within 90 days."
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