Central and Eastern Europe (CEE)

Russia’s EuroChem is the latest issuer from the country to conduct a liability management exercise and is planning to refinance a buy-back of its $750m 2017s with a new dollar bond.

Some Turkish banks will have to pay an extra 25bp on loans after Moody’s downgraded 14 borrowers on Monday, triggering ratings ratchets. Vakifbank signed a loan refinancing just hours before Moody’s hit it with a downgrade.

Days after China made the landmark decision to appoint a US renminbi clearing bank, it has made yet another clear political statement by appointing Industrial and Commercial Bank of China Moscow as Russia’s clearing bank, with a bond market link also in the making.

Yapi Kredi Bank is in the market with its annual loan refinancing, as Turkey’s sovereign rating received its second downgrade of the year on Friday, putting Yapi in line to follow.

Moody’s cut Turkey’s investment grade rating to junk on Friday, as anticipated, but comments the agency made last week caught investors off guard. However, despite the initial sovereign sell-off, a rally has begun.

With a $7.5bn book and a deal sold wholly to international investors, Russia returned to the capital markets in style on Thursday, shrugging off the ghosts of failure that blighted its return in May.

With clearing concerns behind it, Russia’s $1.25bn tap of its 2026s bonds was met with massive demand on Thursday — the book was reported to be over $6bn — but some say a moral dilemma remains.

Rating: BBB/BBB

Rating: B1/—

Russian Railways (RZD) is weighing up the first rouble Eurobond for several years as low global yields boost support for rouble denominated debt.

A surprise upgrade from Standard & Poor’s has prompted Hungary’s international debt to rally 30bp and take its credit default swap surging inside that of Italy, the most traded sovereign CDS reference entity.

Semperit, a rubber and plastic goods manufacturer, has come to the Schuldschein market with a uniquely diverse deal; as an Austrian firm issuing to a largely German market, in Polish and US currencies.