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Ethiopia sovereign dollar-bonds drop after Moody's downgrade

Ethiopia sovereign dollar-bonds fell nearly one cent after Moody's downgraded the country's rating to CAA1.

LONDON, May 18 (Reuters) - Ethiopia sovereign dollar-bonds fell nearly one cent after Moody's downgraded the country's rating to CAA1.

The 2024 issue XS1151974877=TE fell 0.932 cents to trade at 95.06 cents in the dollar, Tradeweb data showed.

Moody's said late on Monday that the downgrade to Caa1 from B2 reflected the view that protracted consideration of the country's application for debt relief under the G20 Common framework have increased the risk of private sector creditors incurring losses.

Ethiopia announced in January it would seek debt relief under the G20 plan to help ease the strain on some developing countries driven towards the risk of default by the costs of the coronavirus pandemic.

(Reporting by Karin Strohecker; Editing by Tom Arnold)

((karin.strohecker@thomsonreuters.com; +442075427262; Reuters Messaging: karin.strohecker.reuters.com@reuters.net))

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