S&P Global Ratings has assigned a “BBB+” rating for the Philippines’ second bond offering this year that would be dollar-denominated.

The Philippines launched on Wednesday morning the offering of benchmark-sized 10.5-year and 25-year dollar bonds. In the past, benchmark-size debt issuances by the Philippines amounted to $500 million or about P25 billion.

With a BBB+ rating, the Philippines is deemed adequate to meet its financial commitments, but adverse economic conditions can weaken the country’s capacity to meet its obligations.

Last April, the government sold $2.35 billion (about P118.7 billion) worth of 10- and 25-year dollar-denominated bonds amid the onset of the coronavirus disease 2019 (Covid-19) pandemic.

The government also sold EUR1.2 billion (about P67.3 billion) worth of Euro-denominated bonds in January.

Proceeds of the latest dollar bond issue are intended for regular budgetary support as well as to finance programs targeted to address the impact of the Covid-19 pandemic.

The government intends to borrow around P3 trillion from the commercial market each for 2020 and 2021 to help finance economic recovery programs. CURRENTPH