...November 22, 2024 MEXICO CITY (S&P Global Ratings) Nov. 22, 2024--S&P Global Ratings today assigned its '##-' issue rating to Honduras' sustainable bond for $700 million due 2034, with an 8.625% interest rate. The rating on the bond is the same as the long-term foreign currency sovereign credit rating on Honduras (##-/Negative/B). The government will use between 91% and 97% of the net proceeds from the issuance for eligible social projects, and it will use between 3% and 9% of the net proceeds for eligible green projects under its sustainability financing framework (see "Second Party Opinion: Honduras' Framework For Green, Social, And Sustainable Thematic Bonds," published Nov. 19, 2024). The '##-' ratings on Honduras reflect the country's low per capita GDP, weak institutions, and very limited exchange rate flexibility, which constrains monetary policy effectiveness. On the other hand, the country has maintained moderate fiscal deficits and debt levels, and most of the sovereign's debt...
