Sri Lanka international bonds rally after Moody's statement
LONDON, Nov 28 (Reuters) -Sri Lanka international bonds jumped more than 1 cent on Thursday after Moody's said it put the country's foreign issuer rating on review for an upgrade and would rate the full sweep of instruments issued as part of the current debt exchange.
The country's 2030 bond enjoyed the biggest gain, up 1.1 cent in the dollar to be bid at 65.96 cents - lifting it to its highest level since June 2021, Tradeweb data showed.
Sri Lanka is in the midst of a bond swap launched on Tuesday, an important part of the island nation's ongoing $12.55 billion debt restructuring and efforts to stabilize the economy.
Moody's said late on Wednesday that it may raise Sri Lanka's 'Ca' long-term foreign currency rating following the government's bond-exchange offer aimed at completing the restructuring of international bonds.
The agency said it provisionally rated the new U.S. dollar-denominated debt offerings 'Caa1', including macro-linked bonds (MLBs), a governance-linked bond (GLB), and stepup and past-due interest bonds. That rating would be three notches above the current sovereign rating.
MLBs have a downside on principal and the GLB is the first of its kind, which had raised doubts about whether agencies would rate the instruments.
Reporting by Karin Strohecker; Editing by Amanda Cooper
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