According to credit assessment agency Moody’s Investors Service, the country’s strong macroeconomic fundamentals, which were also mentioned when it received a Baa3 rating, help its credit profile to remain on the positive side.
The key propellers of the Philippines’ credit rating upgrade from Ba1 last October this year are the active fiscal and consolidation, bullish economic performance, and improved political environment. Christian De Guzman, Vice-President at Moody’s, said these factors and macroeconomic stability indicate that the country is well on its way to higher growth. He added that the economic performance of the Philippines and its institutional strength have been reinforced by a solid track record of inflation activity.
Moreover, the positive rating outlook that the financial body gave to the nation shows that they are confident that growth will continue for one to two years.
Compared to the country’s counterparts, it also displayed a robust external payments position, along with stable gross domestic product (GDP) growth. In fact, for the first three quarters, it has grown 7.4 percent year-on-year even with external challenges and risks.