Fixed Income Analysis /

Weekly credit risk monitor

    Tellimer Research
    21 September 2017
    Published byTellimer Research
    Credits in Focus: DNO and Genel – Similar yields, different risks. We have maintained our Buy recommendation on the US$400mn DNO 8.75% 2020 bond and downgraded the US$422mn Genel 7.5% 2019 bond to Hold. Although both companies are set to benefit from the new agreement with KRG, DNO has a considerably better risk profile due to low net debt and better cash flow to net debt metrics, while yields are essentially equivalent.