Moody’s rates Laos B3

Moody’s Investors Service said it assigned a first-time local and foreign currency long-term issuer rating of B3 to the government of Laos with a positive outlook.

The agency cited the country’s economic strength, institutions and governance strength, high government debt relative to the size of the economy and susceptibility to event risk in determining its rating.

Moody's also assigned local currency bond and deposit ceilings of Ba3, a foreign currency bond ceiling of B1, and a foreign currency deposit ceiling of Caa1. The local currency bond ceiling reflects the maximum credit rating achievable in local currency for a debt issuer domiciled in Laos (similarly for a bank deposit).

The positive outlook reflects Moody's assessment that effective implementation of ongoing infrastructure investment and fiscal reforms would deliver net positive benefits to the economy and the government's fiscal position. This would in turn strengthen Laos's credit metrics to be consistent with a higher rating.

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