Top Corporate Bonds Gain in Last Trading Day of Week

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Highly liquid corporate bonds ended the week on a positive note:

- RSXB (Russian Agricultural Bank) Bond BO-02-002R (ISIN code: RU000A1068R1) +0.1%;

- Polyus Bond PBO-04 (ISIN code: RU000A108L81) +0.1%;

- Borets Capital Bond 001P-05 (ISIN code: RU000A10EK71) +0.7%;

- AFK Sistema Bond Issue 14 (ISIN code: RU000A101XN7) +1.3%.

Companies are rated using a national credit rating scale. The higher the rating, the more reliable the issuer and, typically, the lower the yield on its bonds. The highest rating is "AAA", the lowest is "C", with a "D" rating indicating an actual default.

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

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

Bonds rated from "BBB-" to "BBB+" are transitional. 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 (HYE). 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. The risks associated with these bonds are the highest.

This overview was provided by Alexey Grishchenko, Doctor of Economics, Professor at the Department of Operational and Sectoral Management of the Faculty of "Higher School of Management" at the Financial University under the Government of the Russian Federation.