LONDON, April 19 (Reuters) - Cambodia received a B+ rating for foreign- and local-currency debt from Standard & Poor's on Thursday, with the ratings agency saying the Asian country needs continued help from donors to maintain solvency.
The rating is four notches below investment-grade status. S&P said the rating takes into account Cambodia's relatively high public and external debt, some bilateral portions of which are in arrears.
"Cambodia requires continued donor assistance to maintain domestic and external solvency, owing primarily to its severely constrained revenue-generating capacity, which also renders debt servicing ability vulnerable to negative shocks," the agency said.
S&P analyst Agost Benard said Cambodia's general government revenue to gross domestic product (GDP) ratio of 12 percent was the lowest in the Asia-Pacific region.
However, Cambodia has a track record of strong economic growth -- with real GDP growth averaging 9 percent over the past six years -- and a prudent macroeconomic policy mix, S&P said.
The ratings outlook is stable.
The rating is four notches below investment-grade status. S&P said the rating takes into account Cambodia's relatively high public and external debt, some bilateral portions of which are in arrears.
"Cambodia requires continued donor assistance to maintain domestic and external solvency, owing primarily to its severely constrained revenue-generating capacity, which also renders debt servicing ability vulnerable to negative shocks," the agency said.
S&P analyst Agost Benard said Cambodia's general government revenue to gross domestic product (GDP) ratio of 12 percent was the lowest in the Asia-Pacific region.
However, Cambodia has a track record of strong economic growth -- with real GDP growth averaging 9 percent over the past six years -- and a prudent macroeconomic policy mix, S&P said.
The ratings outlook is stable.
