Recovery prospects looking good: Moody’s keeps PH Baa2 ratings

Credit rater Moody’s Investor Services kept the Philippines at investment grade level in its September 2022 review of the state of the economy.

Moody’s retained the country at “Baa2” with a stable rating, but noted that the economy is still not as strong compared to pre-pandemic levels.

“The rating action is driven by Moody’s view that the challenging global credit conditions will not derail the Philippines’ ongoing recovery from the coronavirus pandemic, although the severity of the pandemic shock has led to an erosion in the rating agency’s assessment of economic strength,” Moody’s said in a September 15 rating action.

Economic recovery appears resilient but delayed, Moody’s added.

The debt watcher is also optimistic about President Bongbong Marcos’ chosen members of the Cabinet to head key government agencies, including the economic cluster.

“The appointment of a technocratic Cabinet supports Moody’s view of a continuation of policy orthodoxy and commitment to reform,” it added, agreeing with the push for additional infrastructure investments and a broader revenue base.