Moody's rates Dominican Republic bonds B1

Moody's Investors Service said it assigned a B1 rating to the government of the Dominican Republic's $1 billion 5 7/8% amortizing bonds due 2024.

The transaction will close April 18. The bonds will amortize in three equal annual installments between 2022 and 2024.

The rating reflects the country's low economic, institutional and government financial strength and its moderate susceptibility to event risk, Moody's said.

The country's economy faces challenges related to its relatively small size and high poverty levels, notwithstanding a long history of strong, if uneven growth, the agency said.

Economic growth remained subdued for the second consecutive year in 2012, notwithstanding a significant increase in government spending and it is expected to slow further this year to just 3% due to planned fiscal consolidation, Moody's said.

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