HALISTER1: Exotix Downgrades Eurobonds of Gabon, Kenya, Rep. Congo, Zambia

Exotix Downgrades Eurobonds of Gabon, Kenya, Rep. Congo, Zambia

(Bloomberg) -- “The bottom line is that Zambia appears to have run out of money,” Exotix analysts Alan Cameron, Stuart Culverhouse say in note after attending IMF/World Bank annual meetings from Oct. 6-8.
  • Expects Zambia to agree IMF program, “but we don’t really know when it will be”
  • Congo Republic, Gabon Eurobonds downgraded to sell from buy, Zambia’s to sell from hold, Kenya’s to hold
  • Congo Republic should pay coupon on 2029 bond, “even if late”; “we cannot escape the impression that the country is running out of money”
  • Recommends clients shift to bonds of Cameroon, which has buy rating, from Gabon
  • Says clients should shift to Tanzania floating rate note from Kenya Eurobonds
  • Retains buy on Ghana’s debt
  • NOTE: Oct. 8, Zambia Says Clock Is Ticking as Reforms Face Vote Deadline Link
  • NOTE: Kenya’s Opposition Warns Investors Against Next Eurobond Link
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Alan Cameron (Exotix Partners LLP)
Stuart Culverhouse (Exotix Partners LLP)

Topics
Congo (Zaire)

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