Fitch Ratings has downgraded its rating for the Islamic Republic of Iran from BB– to B+, to take account of what it calls the “escalating confrontation between Iran and the international community over Iran’s nuclear programme.” Although it contends that material sanctions are still some way off, it argues that the risk is increasing and events “are becoming increasingly unpredictable”. The agency acknowledges, though, that with high oil prices Iran’s external financial position remains strong.

BMA chief confident about region’s fundamentals.

The Kazakh authorities would like to establish Almaty as a regional financial centre but further reform and market development is necessary first. Patrick Gill reports.

In his last interview as director of public credit for Colombia, Felipe Sardi talks to Lawrence White about the strategies his successor will inherit, his efforts to increase the liquidity of Colombian securities and his plans for the federation of coffee growers.

London is seen as the property hotspot in 2006.

The rush of foreign investment into central and eastern Europe has undoubtedly improved standards of corporate governance. But the results of this year’s Euromoney survey of the best companies in the region reveal that some state-owned companies that might prove difficult to acquire also rate highly for their management standards. Lawrence White reports.

(May 2006) It is early days but US issuers are seriously considering covered bond issuance. There are economic and regulatory reasons why this makes sense.

Will US issuers start to look at Europe’s institutional markets?

Looks to have got bargain with its $775 million purchase of spot broker.

China-focused forestry company falls behind in land acquisition.

Equity derivatives dealers have set up an industry group to improve trading efficiency and iron out operational issues in their market.

ResCap was able to pay back its domestic debt owed to GMAC ahead of market expectations following a $3.5 billion multi-tranche transaction ($1 billion of three-year sub, and $2.5 billion of senior – split into $1.75 billion of seven-year and $750 million of three-year).

More than a few doubts have been raised about the rumoured plans of state lender China Construction Bank to buy a major stake in US investment bank Bear Stearns. However, sources in the firm’s Asian head office believe the plans are serious. “I haven’t seen a lot of guys with white socks walking around the office yet,” says a senior employee, “but there’s definitely truth to the rumour. It’s typical Bear strategy: late to the party, perhaps, but a smart call.”

No, you didn’t misread the headline. This year’s re-rating of the Philippines’ economy recently pushed short-term yields to four-year lows and even inside their US counterparts’ temporarily, according to ING. Could the unthinkable be happening? Might Asia’s perennial underachiever be about to turn the corner?

Having been fined £6,363,643 in April by UK regulator the Financial Services Authority for failing to observe proper standards of market conduct and failing to conduct its business with due skill, care and diligence, Deutsche Bank must be keen to promote a spotless reputation in all aspects of its business.

A collection of valuable photos brought together by Refco over three decades is on sale at Christie’s in New York in an attempt to raise money to help pay back the $16 billion the commodities trading firm owes to creditors. Works by such photographers as Richard Avedon, Diane Arbus and Andres Serrano are included in the collection, which is expected to raise north of $6 million.

Boaz Manor, co-founder of Canadian $800 million hedge fund Portus Alternative Asset Management, says he doesn’t know what has happened to the $8.8 million-worth of jewels he bought with investors’ money, according to a lawyer investigating the fund’s failure. Manor is currently in Israel after fleeing there after his company’s meltdown. In total about $700 million has been secured after being found in 130 Portus bank and investment accounts in Canada, the Turks and Caicos Islands and the Cayman Islands, says the local press. Where the jewels are remains to be seen. Creditors meet in June.

Investors will have to wait for deals to burn out before prepayments in European CMBS transactions begin to ease.

Bankers reckon convertible bonds will be a product to watch in the developing world.

The removal of restrictions on trans-national M&A are fundamental to EU principles. Turkey is setting an example.

More challenging asset classes will require a different approach to Italian public sector risk.

There’s widespread agreement that there are too many portals providing FX prices but consolidation has been slow. Is the market going to stop waiting and roll out multi-asset platforms instead?

International banks have been encouraged to re-enter the Saudi project finance market with big-ticket deals backed by a relatively healthy risk environment and more solid financial guarantees than in the past. Nigel Dudley reports.

With EU accession for Croatia still a few years away, the country’s financial authorities are focusing their attention on developing the local bond market. Oonagh Leighton reports.

“I tried really hard not to use the words ‘dead cat bounce’ when we met.”

Convertibles have regained popularity in M&A because of the types of deals being done.

At the start of April, Chuck Prince, chairman and CEO of Citigroup, came to Riyadh to lobby the Saudi finance ministry, central bank and capital markets regulator to let the US firm back into the kingdom less than two years after Citigroup sold off its 20% stake in Samba (previously Saudi American Bank). It was one of the early big decisions of Prince’s tenure as CEO and signalled the end of Citigroup’s presence in a country where it had operated since 1955.

After a few years of dormancy, convertible bond issuance in emerging Europe and the Middle East is picking up again. A few innovative and highly structured deals have priced this year and bankers are confident of more transactions. Sudip Roy reports on factors driving the activity and the types of investors involved.

The capital markets are something of an open goal for debt issuers at the moment – spreads are tight, and investors want to put their money to work.

IMF responds to Nielsen accusations