Moody’s Downgrades PNG’s Foreign Currency Rating

admin's picture

Pacific Islands Development Program, East-West Center With Support From Center for Pacific Islands Studies, University of Hawai‘i

Moody’s Downgrades PNG’s Foreign Currency Rating Foreign reserves under strain from balance of payment pressures

WELLINGTON, New Zealand (Radio New Zealand International, April 26, 2016) – The credit ratings agency Moody's has downgraded Papua New Guinea's foreign currency and local currency issuer ratings.

The ratings have gone down from B1 to B2.

Moody's says heightened balance of payments pressures have put strains on foreign currency reserves and will continue for two years.

Another driver of the downgrade is the government's persistent unfavourable domestic funding conditions.

These have increased refinancing risks and eroded debt affordability.

Moody's says the outlook on the ratings is stable with medium term economic growth prospects remaining robust.

Rate this article: 
No votes yet

Add new comment