A spike in interest rates on the issued Eurobonds would have implied that investors would likely demand a higher return on future debt issuances by Kenya in the international markets as the country is assessed to be at a high risk of debt default.
Interest rates on Kenya’s issued Eurobonds have fallen while the exchange rate remains unchanged, signalling market calm amid the sovereign credit rating downgrade, which has been feared to raise the country’s risk profile in domestic and international markets.
Yields on the Eurobonds have trended lower in recent days in contrast to last week, surprising market observers who had expected the ratings downgrade to drive fear and selloff activity.
