Nairobi, Feb. 1 -- The higher rating by Moody's has helped extend the rally in Kenyan Eurobonds as investors acknowledge lower country credit default risks.

Traded Eurobond yields fell by between 0.019 percentage points and 0.133 percentage points last week on the backdrop of the ratings upgrade as per data from Bloomberg.

Moody's upgraded Kenya's long-term foreign currency sovereign credit rating from "Caa1" to "B3" noting that the country's near-term risk of default had fallen.

The "Caa1" rating implies that Kenya's debt was judged to be of poor standing and subject to very high credit risk with the "B3" rating signifying an improved standing, but obligations are still viewed as speculative and subject to high credit risk.

The agenc...