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MANILA: Global credit watcher Moody’s Ratings has affirmed the “BAA2” investment-grade credit rating of the Philippines with a “stable’ outlook, citing the country’s economic and fiscal reforms.
In a news release Friday, the Bangko Sentral ng Pilipinas (BSP) expressed satisfaction with the affirmation by Moody’s, while reiterating its commitment to improve the country’s rating.
‘The BSP welcomes Moody’s affirmation of the country’s investment-grade rating, even as we work with the government to improve the country’s ratings,’ BSP Governor Eli Remolona, Jr. said.
Moody’s said Philippine economic reforms, fiscal consolidation efforts and robust macroeconomic fundamentals are key factors.
During the second quarter of 2024, the Philippine Statistics Authority reported a 6.3 percent year-on-year gross domestic product growth.
Moreover, foreign direct investment (FDI) net inflows from January to May 2024 increased by 15.8 percent to USD 4.0 billion, compared to USD3.5 billion during the same period in 2023.
M
oody’s anticipates continued growth in FDI, driven by strong investor interest in sectors such as energy, manufacturing, and information and communications.
The Marcos administration’s infrastructure development plans, under the “Build Better More” initiative, are also expected to contribute to the country’s economic growth and reduce the country’s infrastructure gap.
Moody’s Investors Service is among the world’s most respected, widely utilized sources for credit ratings, research and risk analysis.
Source: Philippines News Agency
