Fitch Removes Dominican Republic's Default Rating
NEW YORK--(BUSINESS WIRE)----Fitch Ratings today upgraded the Dominican Republic's long-term foreign currency rating to 'B-' from 'DDD', where it was placed at the time of the Dominican Republic's distressed debt exchange. The rating action reflects the reopening of the exchange, which brought investor participation up to 97% of the face value of eligible bonds from the previous 94%. This 'B-' rating is in line with the new bonds issued as part of the exchange. The Rating Outlook is Stable. Similarly, the short-term rating has been upgraded to 'B' from 'C' by Fitch.
The long-term foreign currency rating as well as the ratings on exchange eligible bonds were downgraded to 'DDD' on May 5 on the announcement of the completion of a debt exchange, which Fitch determined to be an event of default under its distressed debt exchange criteria (see 'Sovereign Distressed Debt Exchanges' at www.fitchratings.com). It is Fitch's practice to keep the long-term foreign currency rating and the ratings on exchange eligible bonds in the default category for at least 30 days and to take them out of default if payments have been made according to the original terms. Given the high rate of participation in the exchange, Fitch expects the government to continue servicing the holdouts. Once payment has resumed according to the original terms on the exchange eligible bonds, Fitch will remove the ratings on the exchange eligible bonds from default as well.
Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days.
Fitch Ratings, New York Theresa Paiz Fredel, 212-908-0534 Kenneth Reed, 212-908-0540 (Media Relations)
07/19/2005 15:37 ET
NEW YORK--(BUSINESS WIRE)----Fitch Ratings today upgraded the Dominican Republic's long-term foreign currency rating to 'B-' from 'DDD', where it was placed at the time of the Dominican Republic's distressed debt exchange. The rating action reflects the reopening of the exchange, which brought investor participation up to 97% of the face value of eligible bonds from the previous 94%. This 'B-' rating is in line with the new bonds issued as part of the exchange. The Rating Outlook is Stable. Similarly, the short-term rating has been upgraded to 'B' from 'C' by Fitch.
The long-term foreign currency rating as well as the ratings on exchange eligible bonds were downgraded to 'DDD' on May 5 on the announcement of the completion of a debt exchange, which Fitch determined to be an event of default under its distressed debt exchange criteria (see 'Sovereign Distressed Debt Exchanges' at www.fitchratings.com). It is Fitch's practice to keep the long-term foreign currency rating and the ratings on exchange eligible bonds in the default category for at least 30 days and to take them out of default if payments have been made according to the original terms. Given the high rate of participation in the exchange, Fitch expects the government to continue servicing the holdouts. Once payment has resumed according to the original terms on the exchange eligible bonds, Fitch will remove the ratings on the exchange eligible bonds from default as well.
Fitch's rating definitions are available on the agency's public web site, www.fitchratings.com. Published ratings, criteria and methodologies and relevant policies and procedures are also available from this site, at all times. This document will remain on the public site for seven days.
Fitch Ratings, New York Theresa Paiz Fredel, 212-908-0534 Kenneth Reed, 212-908-0540 (Media Relations)
07/19/2005 15:37 ET
