Moody's rates Philippines bond exchange Ba3

Moody's Investors Service said it assigned a foreign-currency rating of Ba3 to the securities under the Philippines' forthcoming bond exchange offer.

The outlook is stable.

The securities available include a new global bond issuance and a re-opening of a pre-existing bond issuance program. The proposed rating is subject to receipt of final documents.

The rating is anchored by the continued strength in the sovereign's external payments position and a favorable outlook for domestic-demand driven economic growth, Moody's said.

The rating is supported by a relatively sound and liquid banking system, which poses manageable risks to the government's balance sheet, the agency said.

The ratings also reflects continued weaknesses in revenue collection, as well as a large public-sector debt overhang, relative to its rating peers, the agency said.

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