Moody's: Papua New Guinea ratings reflect vulnerability

Moody's Investors Service said in its annual report on Papua New Guinea that the country's B1 foreign-currency debt rating and stable outlook reflect its rich natural resource base as well as its vulnerability to shifts in external demand and international commodity prices.

"The current ratings incorporate the likelihood of economic volatility and the impact that the fractious political system has had on economic policy and the investment climate," said Moody's vice president Steven Hess, author of the report.

Fluctuating government revenues and increasing expenditures have resulted in relatively high government debt levels, the agency said, noting the ratio of debt to GDP peaked at over 70% in 2002 and the government has reduced this ratio to about 50%.

© 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.