MOODY’S LOWERS ARMENIA’S FOREIGN-CURRENCY BOND CEILING AFTER BOND SALE
Wall Street Journal
Sept 20 2013
By Michael Calia
Moody’s Investors Service lowered its foreign-currency bond ceiling on
Armenia, citing the country’s low institutional strength and limited
financial and trade openness.
Now the highest rating that can be assigned to a domestic issuer
in foreign currency in Armenia is Ba1, down from Baa3, the ratings
firm said.
Moody’s said its foreign-currency bond ceiling assesses the
probability that a defaulting government would adopt a moratorium on
foreign-currency debt repayments of domestic issuers.
The move comes a day after Armenia sold a $750 million, seven-year
bond to price at a yield of 6.25%, attracting $3.25 billion in orders,
according to The Wall Street Journal. It was the country’s first
dollar bond.
Moody’s said it would likely reassess Armenia’s bond ceilings if the
country’s debt rating were to change.
Moody’s in August raised its outlook on Armenia’s junk-level ratings
to stable, citing the nation’s efforts to cut deficits as well as its
continued access to external funding sources on favorable terms. The
firm at the time also reaffirmed Armenia’s Ba2 rating, two levels
into junk territory.
From: Emil Lazarian | Ararat NewsPress
