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1 May 2013
Forex Flash: Slovenia´s bond offer delayed - Deutsche Bank
FXstreet.com (Barcelona) - Jim Reid of Deutsche Bank notes that yesterday, Slovenia’s delayed bond offer was one of the interesting market stories.
He sees that the government had initially planned to issue 5-year and 10-year US$ bonds after having received good feedback from bond investor meetings but at the end decided to delay the offering following Moody’s negative rating action. Further, he notes that the agency downgraded Slovenia’s sovereign rating to Ba1 from Baa2 and the outlook remains Negative. Moody’s said the action reflects the state of Slovenia’s banking sector, the marked deterioration of Slovenia’s government balance sheet and uncertain funding prospects that heighten the probability that external assistance will be needed. he writes, “Moody’s two notch downgrade means its rating on Slovenia is now multiple notches below S&P’s A-/Stable and Fitch’s A-/Neg. According to a Bloomberg article, the said 5-year and 10-year debt were initially being offered in the region of 5% and 6.12% respectively, according to Bloomberg.”
He sees that the government had initially planned to issue 5-year and 10-year US$ bonds after having received good feedback from bond investor meetings but at the end decided to delay the offering following Moody’s negative rating action. Further, he notes that the agency downgraded Slovenia’s sovereign rating to Ba1 from Baa2 and the outlook remains Negative. Moody’s said the action reflects the state of Slovenia’s banking sector, the marked deterioration of Slovenia’s government balance sheet and uncertain funding prospects that heighten the probability that external assistance will be needed. he writes, “Moody’s two notch downgrade means its rating on Slovenia is now multiple notches below S&P’s A-/Stable and Fitch’s A-/Neg. According to a Bloomberg article, the said 5-year and 10-year debt were initially being offered in the region of 5% and 6.12% respectively, according to Bloomberg.”