Zambia’s Missed Eurobond Payment Prompts Default Call by S&P
- Country skipped service due on $1 billion securities due 2024
- Investors skeptical as government aims for deal within months
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S&P Global Ratings Services cut its assessment of Zambia’s debt to selective default after the southern African nation said it couldn’t meet payments and skipped a coupon on its Eurobonds last week.
The action is the latest blow to Africa’s second-biggest copper producer, which is trying to convince bondholders to give it a six-month interest-payment holiday while it drafts debt-restructuring plans. The ratings company, which didn’t wait for a 30-day grace period to expire after the missed coupon payment, forecast the nation will remain in default at least through the six months.