Fitch rates PH dollar bond offering 'BBB'

April 29, 2020

Fitch Ratings has assigned a “BBB” rating on the country’s  latest US dollar bond offering, same as the debt rater’s rating on the country, which has a positive outlook.

The nationl government on Monday offered 10- and 25-year US dollar-denominated bonds overseas and National Treasurer Rosalia de Leon said they expect to issue a benchmark volume of about $500 million to $700 million.

Proceeds of the bond issuance would be used to boost government financing this year.

President Duterte said borrowings would be used to help finance coronavirus disease  response program if the savings and allocation that has been realigned from this year’s national budget is not enough to cover programs addressing the impact of the pandemic.

The government has formulated a four-pillar program amounting to P1.4 trillion to help Covid-19 affected sectors.

Included in the program is the disbursement of P205-billion financial subsidy for 18 million poor households in the informal sector and P51-billion wage subsidy program for employees working in small businesses.

This program would be financed with the help of up to P310 billion loans from multilateral institutions like the Asian Development Bank  and the World Bank.