Russia Junk Rating Sends Bonds Lower as Ruble Rises From Record

Russia’s first junk rating in a decade pushed the nation’s bonds lower for a second day and stocks declined as the threat of fresh sanctions over the conflict in Ukraine and an oil-price slump batter its economy.

The ruble closed at a record low yesterday after Standard & Poor’s became the first of the big-three ratings companies to strip Russia of its investment grade, citing weaker growth prospects and a deterioration of fiscal buffers. Russia’s central bank spent $88 billion propping up the currency last year. European Union leaders threatened to tighten sanctions as soon as Thursday in reaction to renewed attacks on eastern Ukraine by pro-Kremlin separatists.