Fitch: PHL debt buy-back offer won’t impact rating

The Philippine government's offer to buy-back around P$1.5 billion in outstanding global bonds won’t impact its ratings, the international rating agency said Tuesday. “The Long-term Foreign Currency Issuer Default Rating (IDR) of the Philippines is 'BB+' with Stable Outlook. The Long-term Local Currency IDR is 'BBB-' with Stable Outlook," Fitch said in an emailed statement. The Philippine target is to spend $1.5 billion to buy its dollar- and euro-denominated bonds and settle accrued interest but may spend more or less than this amount at its sole discretion, Fitch noted in its brief sent to media organizations. “Select USD and EUR bonds with an aggregate principal amount of approximately USD17.7bn equivalent are eligible for repurchase under the offer," the agency said. “As part of the operation, the Republic of the Philippines is raising a total of USD50m by re-opening the 6.375% global bonds due 2034," Fitch said. “Fitch regards the transaction as a normal part of the Republic's sovereign debt management and consequently the agency does not expect there to be any direct implication for the sovereign ratings," the agency added. — VS, GMA News