NEW YORK (TheStreet) -- Shares of Russian telecommunications company Mobile Telesystems (MBT) were down 12.72% to $6.04 in morning trading Tuesday as the ruble continued to plunge despite Russia's central bank's interest rate hike.
The bank increased its interest rates to 17% from 10.5% just four days after it raised the rate to 10.5% from 8%.
But the measure did not stop the ruble's plunge, as the currency plummeted 19% on Tuesday, according to Bloomberg. The ruble fell to as weak as 80.10 per dollar, a record low, before it recovered to 72.90 by 5:18 p.m. in Moscow.
Russians hurriedly converted their currency into dollars amid worries that the government would institute currency controls.
TheStreet Ratings team rates MOBILE TELESYSTEMS OJSC as a "hold" with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:
"We rate MOBILE TELESYSTEMS OJSC (MBT) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its expanding profit margins and notable return on equity. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, weak operating cash flow and a generally disappointing performance in the stock itself."