THE Duterte administration welcomed Wednesday the move of Moody’s Investors Service of maintaining the Philippine's investment grade rating.
In a statement released Tuesday, Moody’s said the sovereign credit rating of the Philippines was maintained at Baa2, which is a notch above the minimum investment grade, and the outlook on the rating remained “stable.”
“The favorable credit rating from Moody’s is a telling mark of the Duterte administration’s heightened efforts to sustain the robust growth of the Philippines by attracting more investments and, more importantly, to make it a more inclusive one by raising spending on infrastructure and human capital,” Finance Secretary Carlos Dominguez III said in a statement.
Outgoing Bangko Sentral ng Pilipinas Governor Amando Tetangco, Jr. said the decision of Moody’s speaks well regarding the favorable path that the Philippine economy continues to tread, partly on account of the price and financial stability that comes on the back of prudent monetary policies and bank supervision.
"The banking sector, which remains strong and stable, will also continue to support the increasing potential output of the economy as it provides financing for growing investment and consumer demand," he said.
Moody’s said it expects the Philippines’ economic performance to remain strong while debt consolidation will continue and foster further convergence of key fiscal metrics versus corresponding peer medians.
But the credit rating agency cited some risks on the Philippines, such as the conflict in Marawi where the government has been addressing rebellion waged by the Islamic State-inspired Maute group.
But Domiguez said the Duterte administration is on top of the situation in Marawi and that the impact of the conflict is expected to be minimal and contained to that city in Southern Mindanao. (SDR/VoxPop Philippines)