S&P rates Philippines issues BB+

Standard & Poor's said it assigned its BB+ senior unsecured rating to the Republic of Philippines' (foreign-currency BB-/stable/B, local-currency BB+/stable/B) new three- and five-year benchmark bond issues. The new bonds mature in 2010 and 2012 and carry interest rates of 5 ½% and 5 ¾%, respectively.

Launched in February 2007, the bonds are part of the government's efforts to consolidate a multitude of illiquid bonds into large benchmark issues, thereby deepening the local-currency government debt market, S&P said.

The ratings have a stable outlook, which balances the government's achievements in fiscal consolidation and public sector reform against continuing risks to revenue and deficit targets in light of weak collection and administration efficiency, the agency said.

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