Phl confident of another Moody’s credit upgrade

MANILA, Philippines - Government officials expressed confidence yesterday the country will be awarded another credit upgrade by Moody’s Investors Service, following a meeting with the debt watcher’s officials last week in London.

“Moody’s has recently upgrade Peru by two notches, so I am hopeful that developments in the Philippines will also be recognized,” Finance Secretary Cesar V. Purisima said.

“I believe the Philippines also exhibits stable macroeconomic fundamentals, strong fiscal performance, and promising legislative reforms,” he said.

The meeting with representatives of Moody’s came on the sidelines of the non-deal roadshow for London-based investors concluded last week.

Moody’s in October last year raised the country’s credit rating to Baa3 from Ba1 and assigned a positive outlook, which means further upgrade may be given in the next 12 to 18 months.

“The meeting with Moody’s went well. Representatives from Moody’s asked us to discuss monetary policy actions given inflation trends, real estate market developments, and external payments developments, among others,” BSP Assistant Governor Ma. Cyd Tuano-Amador said.

In May, Moody’s vice president and senior analyst Christian de Guzman said the positive outlook on the Philippines’ credit rating was a “clear signal” that rating hikes are expected given the country’s robust economy, fiscal and debt consolidation, and political stability.

The country also enjoys a ‘BBB’ rating from Standard & Poor’s which is a notch above the minimum investment grade level.

S&P in May said the rating was raised as reforms instituted by the current administration are seen continuing even after President Aquino steps down in 2016.

Fitch Ratings, meanwhile, affirmed its ‘BBB-‘ rating on the country back in March and assigned a stable outlook.

The debt watcher said it could upgrade the country’s rating if further improvements will be made to enhance business climate and accelerate investments in the Philippines.