Moody’s Lowers Armenia’s Foreign-Currency Bond Ceiling After Bond Sa


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

Emil Lazarian

“I should like to see any power of the world destroy this race, this small tribe of unimportant people, whose wars have all been fought and lost, whose structures have crumbled, literature is unread, music is unheard, and prayers are no more answered. Go ahead, destroy Armenia . See if you can do it. Send them into the desert without bread or water. Burn their homes and churches. Then see if they will not laugh, sing and pray again. For when two of them meet anywhere in the world, see if they will not create a New Armenia.” - WS