S&P rates Honduras bond B+

S&P said it assigned a B+ rating on the Republic of Honduras' $500 million senior unsecured bond due in 2027.

The proceeds from the issuance will be loaned to the National Electric Energy Co. for the repayment of account payables owed to suppliers and to repay other indebtedness, the agency said.

The rating on the bond is the same as the long-term foreign-currency sovereign credit rating on Honduras, S&P said.

The ratings reflect the Honduran government's commitment to maintaining disciplined public finances, which could continue improving the country's fiscal flexibility, the agency said.

Moreover, Honduras continues to make efforts to address its major challenges related to overall weak institutions, crime and high poverty, S&P said.

The positive outlook also reflects a view that strengthening revenue management and tighter controls of current expenditures could improve the country’s fiscal flexibility faster, the agency said.

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