Russia Economic Pain Spreads as UBS Cuts Seven Stocks

Russia’s worsening economic crisis is spreading through its corporate bond and stock markets as a tumbling ruble and plunging growth erode confidence in companies recently seen as able to withstand the turmoil.

UBS AG cut stock ratings for seven retail and Internet companies yesterday including Lenta Ltd. and Yandex NV. Petropavlovsk Plc, Russia’s third-biggest gold producer, agreed with most of its investors to a rescue package that includes selling $335 million of shares and bonds to cut debt. More than 50 of the country’s corporate bonds now yield at least 10 percentage points more than Treasuries, levels considered distressed.