Fitch affirms Ethiopia at ‘RD’ as $1bn Eurobond restructuring advances
On 16 October 2026 Fitch Ratings affirmed Ethiopia’s Long‑Term Foreign‑Currency Issuer Default Rating at ‘RD’ (Restricted Default), citing the country’s continued default on its single US$1bn Eurobond while noting ongoing commercial restructuring progress including a June 2026 agreement‑in‑principle to exchange the defaulted bond for a new instrument and associated new‑money warrants.
The desk brief
On 16 October 2026 Fitch Ratings affirmed Ethiopia’s Long‑Term Foreign‑Currency Issuer Default Rating at ‘RD’ (Restricted Default), citing the country’s continued default on its single US$1bn Eurobond while noting ongoing commercial restructuring progress including a June 2026 agreement‑in‑principle to exchange the defaulted bond for a new instrument and associated new‑money warrants.
Fitch’s affirmation at ‘RD’ formally recognises that Ethiopia remains in default despite commercial restructuring progress; the decision signals that completion of the Eurobond exchange and broad private‑creditor normalisation are prerequisites for a forward‑looking rating. The outcome preserves sovereign default status and keeps Ethiopia’s USD sovereign curve and recovery expectations contingent on successful consent solicitations and implementation of the replacement bond/warrants.
Consent solicitation and bondholder vote expected in coming weeks; possible completion by end‑2026.
Sources & verification
Developing storyDeveloping story supported by 2 independent public publishers; further confirmation is being sought.
- Fitch keeps Ethiopia at restricted default as $1bn Eurobond restructuring nears completion, Tigray war loomsintellinews.comSource published (opens in a new tab)
- Fitch affirms Ethiopia at ’RD’ as Eurobond debt restructuring progressesyahoo.comSource published (opens in a new tab)
Public references supporting this brief.