S&P rates Philippines bonds BB

Standard & Poor's said it assigned its BB debt rating to the Republic of the Philippines' (foreign currency BB/stable/B; local currency BBB/stable/A-3) announced $500 million or higher global bonds due 2015.

S&P said the sovereign credit ratings on the Philippine government is supported by the country's adequate external liquidity, with total debt service (including short-term debt) projected at 37% of current account receipts in 2004, similar to the median level for rated peers. Total external debt is projected at 131% of current account receipts this year, the same as the median level.

"The central government deficit is likely to remain relatively high at about 4% of GDP by government's definition this year, compared with 4.3% in 2003, due largely to weak tax collection," said S&P credit analyst Takahira Ogawa. "General government debt, excluding amounts guaranteed by the government and lent to public-sector corporations, is approaching 90% of GDP this year, compared with the median level of 51% for similarly rated sovereigns."

© 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.