Eurobond values drop on Moody’s credit downgrade
Wednesday, May 20, 2020 0:01
By GEOFFREY IRUNGU
The Central Bank of Kenya building in Nairobi.
FILE PHOTO | NMG
Prices of Kenyan sovereign bonds have fallen significantly since May 7 when rating agency Moody’s downgraded the country credit rating to negative from stable.
Data from the Central Bank of Kenya (CBK) shows yields, whose increase indicate falling prices, were up by amounts ranging from a half percentage point to 1.315 percentage points within five working days between May 7-14.
“In the international market, yields on Kenya’s Eurobonds increased by an average of 82.5 basis points,” the CBK said.
On May 7, Moody’s Investors Service released a statement saying it had changed Kenya’s credit rating to reflect the escalation in financing risks of the country’s large borrowing requirements.
