Kenya: Kenya's debut Eurobond plans have been cast into doubt and are likely to be delayed until mid next year as the disputed election results continue to spark violence across the country.

Corruption at the polls: Last week's elections have degenerated into ethnic violence throughout the country after President Mwai Kibaki was reelected amid widespread allegations of vote-rigging. The disputed poll triggered a wave of violence that has killed more than 300 people and displaced tens of thousands.

Kenya Finance Ministry: The Republic of Kenya planned to sell a sovereign bond internationally in the first quarter of 2008 to finance infrastructure development. Kenya's finance ministry set a target of raising around $300 million, the finance ministry stated in a press release in November.

The bond issue depends on the resumption of political stability: But worries about global financial instability coupled with subprime mortgage concerns in the US, and political stability will likely make it more difficult for the Kenyan Finance Ministry to acquire a tight investor base for its bond.

Standard and Poors Rates: moves from a B+ from BB- and put its long-term foreign and local currency B+ rating on credit-watch with negative implications.

Moving forward: Should the political situation and its multiple social and economic ramifications neglect to improve in the upcoming month, a lowering of both the foreign and local currency ratings is a likely possibility.