Tuesday, 27 January 2015

UPDATE 2-Market reaction muted after S&P drops Russia to 'junk'

Jan 27 (Reuters) - Russian financial markets saw a muted reaction on Tuesday after ratings agency S&P downgraded the country's sovereign credit rating to 'junk', with the rouble strengthening and Moscow-listed shares broadly steady.
Although the rouble fell sharply on Monday and bond yields rose, analysts said that the immediate implications of the downgrade were limited, as the move was largely priced in and other major agencies still rate Russia above junk.
Bond yields on Russian Eurobonds did edge higher on Tuesday, however, as did the cost of insuring exposure to Russian debt.

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