FITCH Ratings says Zambia’s plan to buy back its US$1.36 billion Eurobond does not constitute a distressed debt exchange (DDE). In commentary issued last Wednesday, the agency said the tender offer did not aim to avoid a traditional payment default, adding that it believed Zambia had the capacity to service the bond under both baseline and upside case scenarios. “The Zambian authorities’ tender offer to buy back its Bond B does not constitute a distressed debt exchange (DDE), Fitch Ratings says. If the bond can be redeemed in full, the sovereign would avoid additional costs that could be triggered under its upside case treatment. We believe there is a reasonable chance this case will be triggered if the bond is...