Philippines marks the 21st positive credit rating upgrade since the administration of President Aquino started. Moody’s Investors Service upgraded Philippine credit rating by one notch to Baa2, with outlook seen as stable.
“Among the factors that led to their decision were the administration’s reforms in the Bureau of Customs, our continued efforts at budget transparency, and improvements as regards the structuring of our debts,” Secretary Edwin Lacierda said in a written statement.
“With these upgrades comes increased fiscal flexibility, and the Filipino people can be assured that our administration will continue channeling these gains towards the benefit of the broader spectrum of society, as we continue to tread the straight path towards a Philippines that is more prosperous, progressive, and inclusive,” Lacierda added.
Another factor is Philippines’ limited vulnerability to the common risks currently affecting emerging markets. “The Philippines is also less reliant on a slowing China, while its solid current account surplus provides a degree of resilience to shifts in global liquidity conditions in the context of the imminent normalization of US monetary policy,” says Moody’s.