Fixed Income
October 26, 2015
Ukrainian sovereigns headed into the restructuring process closed higher last week ahead of the country’s municipal elections, regaining their positions from two weeks ago. Over the past month, quotes near 80 cents on the dollar have become the consensus price for most outstanding issues, which are set to be exchanged for new bonds with a universal 7.75% coupon by mid-November. Among major news regarding Ukrainian debt last week, Standard & Poor’s upgraded the country’s credit rating from ‘selective default’ to B-. The rating is still classified as ‘junk’ and puts the country’s Eurobonds outside most sovereign Western investment funds. S&P had downgraded Ukraine to ‘selective default’ on Sept 25.
