Russia Credit Risk Soars to Six-Year High as Ruble Slides on Oil
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The cost of insuring Russian bonds against default rose to the highest level in almost six years on speculation a cut in the nation’s credit rating to junk is imminent. The ruble tumbled for a second day.
Five-year credit default swaps jumped 56 basis points to 594 by 6:54 p.m. in Moscow, the most since March 2009 on a closing basis and the fifth-highest sovereign globally. The contracts rose 118 basis points in the past three days. The ruble lost 1.9 percent to 62.0265 a dollar as Brent crude slid toward $50 a barrel for the first time in almost six years.