The Municipality of Tegucigalpa and Comayagüela--which constitutes the Central District, Honduras'largest city and political and administrative center--plans to issue an inaugural U.S. dollar-denominated global bond with an intermediate-term maturity. In doing so, the administration aims to refinance the entirety of its local currency domestic bank debt, worth 192% of operating revenue in 2025, and raise funds for its capital expenditure program, in particular for the San José and Jacaleapa dam. We assigned our'B-'long-term issuer credit rating to the Central District considering the municipality's heavy debt and interest burden, low and volatile liquidity, and low GDP per capita compared with peers. The stable outlook reflects continued solid operating surpluses given steps to reduce inefficiencies in revenue collection and