Moody's cuts Philippines PSALM bonds to Baa1, Baa2

Moody's Investors Service said it downgraded the ratings of two tranches of Yen-denominated guaranteed bonds due in 2020 and 2022 and issued by Power Sector Assets and Liabilities Management Corp. (PSALM) of the Philippines.

Moody's downgraded PSALM's tranche A ¥247.5 billion 3.20% guaranteed bond due 2020 to Baa1 from A3 and tranche B ¥37 billion 3.55% guaranteed bond due 2022 to Baa2 from Baa1.

The rating action follows Moody's decision to downgrade the long-term foreign currency rating of the Republic of the Philippines to B1 from Ba2 and concludes the review for possible downgrade, which was placed on the bonds in November when the long-term foreign currency rating of the Philippines was placed under review for possible downgrade.

Moody's said the ratings address the expected loss posed to investors by the respective maturity dates of the bonds in December 2020 and December 2022.

© 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.