After Fitch, Moody’s also keeps PH at investment grade
Inflation concerns plus a planned change in the form of government stand as new risks faced by the Philippines.
Moody’s Investors Service has kept the Philippines at a Baa2 rating with a stable outlook on Friday, July 20. While the debt watcher is convinced that growth will remain upbeat, it flagged new developments in the country which pose as major threats to the outlook.
“The stable outlook also balances positive and negative factors. Moody’s expects that growth will remain robust and that the Philippines’ fiscal metrics will strengthen somewhat as the government continues to make progress on its socioeconomic reform agenda, but these trends are likely to fall short of bringing the Philippines’ credit profile in line with higher-rated countries,” Moody’s said.
“At the same time, policymakers face challenges in managing the current inflationary pressures. In addition, domestic political developments and prospective changes to governance frameworks, including a shift to a federal form of government, present downside risks to the country’s institutional and fiscal profile.”
This comes in the same week when another credit rater Fitch Ratings also affirmed the Philippines at one notch above minimum investment-grade rating.
Changes have come indeed, but whether it will be for the betterment of the country is a huge question.