Russia Junk Rating to Give Buy Signal as Default Unlikely

A Russian downgrade to junk would have some investors seeing an opportune time to buy the nation’s bonds.

Lutz Roehmeyer at Landesbank Berlin Investment GmbH said he will add to his holdings in the event of a ratings-led selloff because Russia is unlikely to default. The nation’s assets have already fallen more than warranted, according to Michael Ganske at Rogge Global Partners Plc. Any market overreaction to a downgrade will offer a buying opportunity, Marco Ruijer of ING Investment Management said.