Fitch rates Dominican Republic bonds B

Fitch Ratings said it assigned a B rating to the Dominican Republic's $750 million 7½% global bonds due May 2021. The rating is in line with the republic's B long-term foreign-currency issuer default rating.

The proceeds will go toward financing infrastructure and providing support to other sectors of the Dominican economy.

The agency said that high per capita income, as well as stronger social, governance and business environment indicators relative to B-range peers, continue to support the sovereign's ratings.

However, Fitch said the republic's weak liquidity position relative to B-range peers highlighted the country's vulnerability to external shocks in an environment of lower global growth and tighter international liquidity conditions, as growth decelerated to 1.4% in the first half of 2009 compared with 7.7% in the first half of 2008.

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