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Article: Fitch Lowers Dominican Republic FC Sovereign Rating to 'C' on Announcement of Distressed Debt Exchange.
- Article from:
- Business Wire
- Article date:
- April 21, 2005
CopyrightCOPYRIGHT 2005 Business Wire. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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NEW YORK -- Upon announcement of an exchange for the Dominican Republic's bonds due 2006 and 2013, Fitch Ratings has downgraded that country's foreign currency issuer rating as well as the ratings on the debt eligible for the exchange to 'C' from 'CCC+', with a Negative Rating Watch.
The aggregate principal amount of the bonds eligible for the exchange is US$1.1 billion. The exchange for new bonds with the same coupon but a longer maturity implies a distressed debt exchange, as do exit amendments to the eligible bonds that weaken their credit quality. Finally, the bond exchange is part of a broader restructuring of the government's external debt profile under the ...