EM CEEMEA CREDIT: Petra Diamonds: proposed refi update
Aug-29 12:35
(PDLLN; Caa3neg/CCneg/NR)
- Supportive read from the release of the latest Co. update. As a reminder, S&P had mentioned a further lowering of ratings to D for the ’26 notes upon completion but highlights that post exchange there is “a high probability” that the ICR will be higher than the pre refi announcement CCC standing, rationale based on subsequent improved B/S structure and limited refi risks. No surprise.
- For reference, the Co. just announced that according to calculations the consent to terms of the proposed refi announcement is in excess of the necessary threshold. As such, the Co. stated their intention to proceed with the plan on the back of consent solicitation. This is expected to happen shortly after FY25 results are published, subject to various conditions/approvals/etc. The Co. has also provided details on the implementation of the Equity Backstop Agreement.
- Please find here a link to our earlier note commenting on S&P’s downgrade:
https://mni.marketnews.com/45Weat9
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US TSYS: Post-Core PCE, GDP React
Jul-30 12:34
- Fast two-way flow -- Treasury futures bounce then extend lows after higher than expected GDP and Core PCE figures. Tsy Sep'25 10Y futures currently trades -6.5 at 111-05 (111-03.5 low, 111-14.5 high).
- Key support is 110-08+, the Jul 14 and 16 low. Clearance of this level would reinstate a bearish theme. First support is at 110-19+, the Jul 24 low. Resistance at 111-13+, the Jul 10 high, has been pierced. A clear break of it would highlight a stronger reversal and open 111-28, the Jul 3 high.
- Curves mildly flatter now: 2s10s -0.091 at 44.854, 5s30s -0.507 at 95.021
- New pullback lows for EUR/USD as the greenback builds again on the better-than-expected GDP headline. EUR/USD comfortably through yesterday's lows to open 1.1454 as the next downside target.
MNI: US Q2 NOM PCE +1.4%
Jul-30 12:30
- MNI: US Q2 NOM PCE +1.4%
- US Q2 REAL FINAL SALES TO PRIVATE DOMESTIC PURCH +1.2%
- US Q2 PCE PRICE INDEX +2.1%
- US Q2 CORE PCE PRICE INDEX +2.5%
MNI: US Q2 GDP +3.0%
Jul-30 12:30
- MNI: US Q2 GDP +3.0%
