Century Properties sets roadshow; Petrobras gets downgraded again; Russia credit widens

By Christine Van Dusen

Atlanta, Jan. 30 – Philippines-based Century Properties Group Inc. on Friday made plans for an upcoming roadshow while emerging markets investors coped with volatility and wider spreads.

“It has been nothing short of a remarkable January this year, as the month draws to a close,” a London-based analyst said. “Amidst all this volatility, primary issuance was relatively limited in January, which has certainly supported spreads.”

Russian credit default swaps spreads ended the week 57 basis points wider, primarily due to concerns about increased sanctions, while bank bonds moved 112 bps wider, he said. Corporates moved out 115 bps.

“The European Commission will prepare additional sanctions, potentially economic, to be discussed at the leader meeting on Feb. 12,” he said. “Obtaining agreement on any punitive measures is likely to be difficult in our view. The United States, however, could far more easily implement more drastic sanctions.”

Also impacting Russian bonds was Friday’s surprising news that the Central Bank cut rates by 15%.

Another issuer received significant attention on Friday. Brazil-based Petroleo Brasiliero SA was downgraded for the third time in the last several months, this time when Moody’s Investors Service cut the company’s unsecured debt to Baa3 from Baa2, a trader said.

This came as the company was being investigated for collusion and money-laundering and was pummeled for releasing long-awaited and unaudited third-quarter earnings that did not include a write-down of assets connected to the corruption scandal.

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