S&P assigns B to Papua New Guinea notes

S&P said it assigned its B long-term foreign currency rating to the proposed U.S. dollar-denominated notes to be issued by the Independent State of Papua New Guinea (B/stable/B).

“Our ratings on PNG reflect structural constraints inherent in a lower-middle-income economy dependent on extractive industries and served by weak institutions, restricted monetary policy flexibility, and increased government debt,” S&P said in a news release.

“These are balanced by medium-term economic growth prospects, underpinned by expected new natural resource projects, including liquefied natural gas and mining projects.”

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