gdogg
07-27-2005, 03:34 AM
Ok...how will this effect my Dollar/Dominican Peso exchange...and when? RD, feel free to chime in!
;)
UPDATE 1-Fitch raises Dominican Rep. foreign bonds to "CCC+"
Tue Jul 26, 2005 3:12 PM ET
NEW YORK, July 26 (Reuters) - Fitch Ratings on Tuesday raised the Dominican Republic's sovereign external bonds that were eligible for April's debt exchange but were not fully swapped to "CCC+" from "DDD".
This rating action reflects the government's commitment to service this debt as demonstrated by the recent coupon payment on 2013 bond. This rating applies to the 9.50 percent bonds due 2006 and the 9.04 percent bonds due 2013, the agency said in a statement.
The exchange eligible bonds were downgraded to "DDD" on May 5 on the announcement of the completion of a debt exchange, which Fitch determined to be an event of default under its distressed debt exchange criteria, the agency said.
The reopening of the exchange brought investor participation up to 97 percent of the face value of eligible bonds from the previous 94 percent.
"The bonds removed from default today are rated below the new bonds "B-minus" issued as part of the exchange," Fitch said. "The distinction is based on Fitch's opinion that the government's willingness to service bonds not tendered on time and in full may be lower than for the new bonds."
Near-term amortization payments on the old bonds (estimated at $40 million in 2006) appear to be covered by net multilateral disbursements and some issuance in the domestic market.
;)
UPDATE 1-Fitch raises Dominican Rep. foreign bonds to "CCC+"
Tue Jul 26, 2005 3:12 PM ET
NEW YORK, July 26 (Reuters) - Fitch Ratings on Tuesday raised the Dominican Republic's sovereign external bonds that were eligible for April's debt exchange but were not fully swapped to "CCC+" from "DDD".
This rating action reflects the government's commitment to service this debt as demonstrated by the recent coupon payment on 2013 bond. This rating applies to the 9.50 percent bonds due 2006 and the 9.04 percent bonds due 2013, the agency said in a statement.
The exchange eligible bonds were downgraded to "DDD" on May 5 on the announcement of the completion of a debt exchange, which Fitch determined to be an event of default under its distressed debt exchange criteria, the agency said.
The reopening of the exchange brought investor participation up to 97 percent of the face value of eligible bonds from the previous 94 percent.
"The bonds removed from default today are rated below the new bonds "B-minus" issued as part of the exchange," Fitch said. "The distinction is based on Fitch's opinion that the government's willingness to service bonds not tendered on time and in full may be lower than for the new bonds."
Near-term amortization payments on the old bonds (estimated at $40 million in 2006) appear to be covered by net multilateral disbursements and some issuance in the domestic market.