MANILA, (PNA) — Malacanang welcomed Thursday Moody’s upgrade of the Philippines’ credit rating to ‘investment grade’, saying this affirms the government’s efforts to improve the economy.
Moody’s upgraded the country’s rating by one notch, from Ba1 to Baa3, due to the country’s robust and sustained economic performance.
“What this shows us is that the last of the “Big 3″ credit ratings agencies has given us investment grade, so there’s no question about our country’s credit rating anymore,” Communications Sec. Ricky Carandang told a media briefing.
Credit ratings agencies Fitch Ratings and Standard & Poor’s Ratings Services have already given the country an investment grade rating.
An investment grade status translates to lower debt interest payments, opening up more credit avenues and luring more foreign investments to the Philippines.
The Palace also said it was a “pleasant surprise” that Moody’s also assigned a positive outlook to the rating, meaning the prospects of another upgrade are quite positive.
Meanwhile, Presidential Communications Development and Strategic Planning Office (PCDSPO) chief Ricky Carandang expressed joy over the upgrade, saying that this affirm the Palace efforts to revive the economy.
“This will have implications or has already had implications for our credit standing, but this sort of just formalizes it. It is a continuation of the confidence that the international community has in the fiscal management of President Aquino and his team,” Carandang said.
The credit rating agency also upgraded the government’s foreign currency shelf rating and the ratings for the liabilities of the Bangko Sentral ng Pilipinas, both at Baa3.