The “high” economic growth of the Philippines is one of the major factors that continue to strengthen its credit profile which is currently rated investment grade, global debt watcher Moody’s Investors Service said Tuesday.
Moody’s just completed a periodic review of the Philippines in which it reassessed the appropriateness of each outstanding rating in the context of the relevant principal methodologies, recent developments and a comparison of the financial and operating profile to similarly rated peers.
The Philippines currently enjoys an investment-grade rating of “Baa2” from Moody’s with a stable outlook.
“The credit profile of the Philippines is characterized by “high” economic strength, which balances robust economic growth and large size to peers against low GDP per capita,” Moody’s said.
It said the country’s moderate institutional strength took into account a long track record of maintaining broad monetary and financial stability, as well as more recent progress in addressing long-standing weakness in revenue generation compared with peers.