Moody’s applies B2 to Honduras bond

Moody's Investors Service said it assigned a B2 rating to the $700 million senior unsecured 6¼% rate bond issued by the government of Honduras, maturing on Jan. 19, 2027.

The rating follows the B2 issuer rating of Honduras, whose outlook is positive.

Moody's upgraded Honduras' ratings to B2 from B3 in May 2016 and maintained a positive outlook reflecting that the country’s fiscal profile has improved significantly, with central administration deficit decreasing to 3.6% of GDP in 2016 from 7.9% in 2013, and debt-to-GDP expected to plateau at around 46% of GDP.

In addition, authorities have implemented institutional enhancements that have brought increased discipline to the budget process, tighter controls on government expenditures and improved tax administration, the agency added.

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