In July, it was reported that Moody’s was reviewing the Philippines for a likely debt upgrade. This has finally come into fruition as the country was awarded a credit rating upgrade, from Ba1 to Baa3. With a Baa3 rating, the Philippines is now considered investment grade.
This is the fourth credit rating the country has received within the year.
Moody’s reasons for the upgrade are consistent with the reasons given by the other three credit rating agencies who announced their upgrades earlier in the year. This includes an economy whose growth can be seen to be sustainable, ongoing fiscal and debt consolidation and the improving conditions of the government. Low inflation rates and the fact that the country’s economy is barely affected by recent global market volatility were also considered.
In addition, the credit rating agency also stated a positive outlook for the country. .This means that the country’s positive economic performance is expected to continue.
Below is a summary of the country’s credit ratings (as of October 3, 2013)
Philippines is now a ripe destination for investment. Interested in setting up a business in the Philippines? Contact Triple i Consulting.