Russian Corporate Bonds Trade Lower on MICEX Tuesday

© ООО Региональные новости

Below is a list of the most liquid corporate bonds traded on the Moscow Exchange:

- RSXB (RSHB) Bond Issue BO-02-002R (ISIN code: RU000A1068R1) -0.3%;

- Polyus Bond Issue PBO-04 (ISIN code: RU000A108L81) -0.3%;

- Borets Capital Bond Issue 001P-05 (ISIN code: RU000A10EK71) -0.3%;

- AFK Sistema Bond Issue 14 (ISIN code: RU000A101XN7) -0.1%.

In Russia, a credit rating scale is used:

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

Bonds rated from "A-" to "AA+" are reliable securities. They are 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 events in the market and economy (for example, an increase 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 and medium-sized businesses operating in risky sectors.

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

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