Hyundai’s dual tranches eyed; Tunisia spreads wider after ratings downgrade; Egypt flat

By Rebecca Melvin

New York, Aug. 21 – In the absence of much new issuance from other regions, emerging market players eyed a couple of announced deals from Asia including Hyundai Capital Services Inc.’s investment-grade dual-tranche notes, which were talked at 155 basis points over Treasuries for the five-year notes and 170 bps over Treasures for the 10-year notes.

The primary market was silent for the Central & Eastern Europe, Middle East and Africa region as the slow summer season continued. Some market players were looking ahead to potential issuance next week following the U.K. bank holiday on Monday.

Back in established issues, spreads widened on Tunisia bonds on Monday after a Moody’s Investors Service rating downgrade, but the spreads of Azerbaijan and Egypt were little changed after Moody’s downgraded the first and affirmed its rating on the second, said a trader covering the CEEMEA region.

Tunisia’s bonds were about 12 bps to 14 bps wider after Moody’s downgraded the long-term issuer rating of the government to B1 from Ba3 and maintained a negative outlook.

Azerbaijan’s 2024 notes were little changed at 101½ bid, 102¼ offered after the rating agency cut that sovereign’s rating to Ba2 from Ba1.

Egypt’s debt was little changed to slightly tighter after the country was affirmed by Moody’s at B3 with a stable outlook.

Overall, the emerging market was mostly quiet without much movement in spreads as a wait and see approach settled in given ongoing geopolitical tensions.

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