Moody’s raised the Philippines’ credit rating to Baa2 with a “stable” outlook.
Reasons for the upgrade include:
1. the country’s ongoing debt reduction and improvements in fiscal management;
2. continued favorable prospects for strong economic growth and limited vulnerability to the common risks currently affecting emerging markets;
3. the current administration’s commitment to good governance; and
4. the BSP’s excellent management of maintaining price and financial stability.
Only the country’s banking system have been deemed by Moody’s to have a positive outlook.
Moody’s said the country is also less reliant on a slowing China, and the country’s solid current account surplus provides cushion to shifts in global liquidity conditions brought by imminent normalization of United States monetary policy.
However, Moody’s warned that the Philippines may not reach its growth target of 7-8%.