S&P’s Russia Junk Warning Shows Ruble Rebound Comes Late

For all of the progress Russia has made over the past week in stabilizing the ruble and quelling its financial crisis, Standard & Poor’s delivered a reminder of just how precarious the situation remains.

S&P said it’s considering cutting Russia’s credit-rating to junk, or below investment grade, for the first time in a decade as the looming recession spurs concern that the nation’s banks will face mounting bad loans. Hours before S&P released its statement yesterday, lawmakers sought to address that very concern, pushing through legislation that will allow President Vladimir Putin’s government to bail out struggling lenders.