Small font size A Larger text size A Largest text size A

Gabon international bonds slip after Moody's downgrades ratings outlook

BY Reuters | CORPORATE | 05:29 AM EDT

JOHANNESBURG, June 25 - Gabon's international bonds declined on Thursday after ratings agency Moody's cut its outlook on the nation's credit to "negative" from "stable".

Longer-dated debt saw the biggest losses with bonds due in 2031 falling 0.8 cents on the dollar to bid at 86.15 cents, Tradeweb data showed. Those due in 2029 fell 0.6 cents to 95.51 cents.

Moody's pointed to fiscal imbalances, high debt refinancing demands amid restricted funding access and weak public finance management, and warned that a planned government audit of past borrowing could uncover previously unreported liabilities and push debt sustainability further off track.

The ratings agency affirmed Gabon's rating at "Caa2". (Reporting by Colleen Goko, editing by Karin Strohecker)

More Fixed Income News

FOREX-Dollar hits 13-month highs as investors bank on rate hikes BY Reuters |ECONOMIC 07:52 AM EDT
Brazil central bank sees inflation near target in 2028 despite near-term pressures BY Reuters |ECONOMIC 07:21 AM EDT
Wealthy nations reap huge benefits from immigration, study finds BY Reuters |ECONOMIC 07:19 AM EDT
PRECIOUS-Gold lingers near 7-month low as Fed hike bets boost dollar BY Reuters |ECONOMIC 07:07 AM EDT

All Fixed Income News

In general the bond market is volatile, and fixed income securities carry interest rate risk. (As interest rates rise, bond prices usually fall, and vice versa. This effect is usually more pronounced for longer-term securities.) Fixed income securities also carry inflation risk and credit and default risks for both issuers and counterparties. Unlike individual bonds, most bond funds do not have a maturity date, so avoiding losses caused by price volatility by holding them until maturity is not possible.

Lower-quality debt securities generally offer higher yields, but also involve greater risk of default or price changes due to potential changes in the credit quality of the issuer. Any fixed income security sold or redeemed prior to maturity may be subject to loss.

Before investing, consider the funds' investment objectives, risks, charges, and expenses. Contact Fidelity for a prospectus or, if available, a summary prospectus containing this information. Read it carefully.

fir_news_article