China credit rater gives top-notch rating for PH’s first yuan bonds
Warm ties between the two countries helped the country bag the highest rating.
Beijing-based China Lianhe Credit Rating Co., Ltd. gave the highest “AAA” rating to the Philippines’ planned issued of yuan-denominated bonds in the Mainland, the Department of Finance said in a statement.
The major rating agency in China said the country’s “strong and consistent economic growth,” as well as a low share of foreign debts and ample dollar reserves make a strong case for the Philippines.
The DoF also pointed out the “strong economic ties between Manila and Beijing” as plus points for the Philippines’ issuance of bonds to Chinese investors.
Manila wants to raise some 1.46 billion renminbi for the maiden issuance.
“The Republic of the Philippines has a well-established institutional framework, but its governance capacity is moderate albeit improving remarkably in recent years,” Lianhe said in its report.
“Additionally, China Lianhe Credit Rating Co., Ltd. also factors in the strengthened economic relations between the Philippines and China as well as the stable source of payment from growing government revenues.”