Moody’s affirms PH credit rating of ‘Baa2’

Debt watcher Moody’s Investors Service on Thursday affirmed the investment grade rating of “Baa2” of the Philippines with a stable outlook, saying the government’s fiscal position in recent years provides a buffer against a rise in public indebtedness due to shocks, such as the COVID-19 outbreak that could trigger a sharp 4.5-percent economic contraction this year.

“Relatedly, the track record of prudent economic and fiscal management, and a robust banking system, contribute to stable access to funding at moderate costs and support prospects for fiscal consolidation and debt stabilization after the shock subsides,” Moody’s said in a statement.

It said that beyond the proposed legislation aimed at facilitating the near-term recovery from the pandemic shock, more structural economic and fiscal reforms were expected to be on hold for some time, delaying potential further improvements in the Philippines’ credit profile.

Moody’s also affirmed the government’s foreign currency senior unsecured shelf rating at Baa2 and the senior unsecured ratings for the liabilities of the Bangko Sentral ng Pilipinas at Baa2. 

Topics: Moody’s Investors Service , investment grade rating , Philippines
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