Moody's shifts Papua New Guinea view to negative

Moody's Investors Service said it changed the outlook on the government of Papua New Guinea to negative from stable. Concurrently, the B2 long-term issuer and senior unsecured ratings have been affirmed.

“The decision to change the outlook to negative from stable reflects the risks that a marked weakening in PNG's fiscal strength and debt position and elevated borrowing requirements raise liquidity risks, notwithstanding the government's strategy to increase reliance on concessional external financing. Moreover, the extent of the fiscal pressures, combined with an uncertain near-term macroeconomic outlook as the economy emerges from a large contraction, will continue to challenge the government's economic and fiscal reform plans and further raise implementation risk,” Moody’s said in a press release.

© 2015 Prospect News.
All content on this website is protected by copyright law in the U.S. and elsewhere. For the use of the person downloading only.
Redistribution and copying are prohibited by law without written permission in advance from Prospect News.
Redistribution or copying includes e-mailing, printing multiple copies or any other form of reproduction.