Corporate Bonds Trade Mixed

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Below are the most liquid corporate bonds traded on the Moscow Exchange on Tuesday:

- Russian Agricultural Bank (RSKH) bond series BO-02-002R (ISIN code: RU000A1068R1) -0.1%;

- Polyus bond series PBO-04 (ISIN code: RU000A108L81) -0.4%;

- Borets Capital bond series 1R-01 (ISIN code: RU000A105ZX2) +0.1%;

- AFK Sistema bond series 14 (ISIN code: RU000A101XN7) +0.1%.

In Russia, a national credit rating scale is used:

Bonds rated "AAA" are the most reliable. These are large systemically important companies, often with state participation.

Bonds rated from "A-" to "AA+" are reliable securities. They are typically invested in by pension funds and other institutional investors.

Bonds rated from "BBB-" to "BBB+" are transitional category. These may be reliable companies that are sensitive to adverse market and economic events (e.g., a rise in the key interest rate).

Bonds rated from "B-" to "BB+" are high-yield issuers (HY). Risks are high, as is the yield. These can be small or medium-sized businesses operating in risky sectors.

Bonds rated "CCC" or "D" are on the brink of default. Risks for these securities are the highest.

This overview was presented by Yulia Grishchenko, Ph.D. in Economics, Head of the Department of Financial and Investment Management at the Faculty of "Higher School of Management" of the Financial University under the Government of the Russian Federation, and a member of the Moscow Exchange Listing Expert Council.