Moody's Keeps Philippines' Credit Rating at Baa2 with Stable Outlook

Moody's Investors Service on Thursday kept the Philippines' credit rating at Baa2 with a stable outlook.

The decision reflects the country's strong fiscal position, which provides a buffer against rising public indebtedness due to shocks like the ongoing coronavirus outbreak.

Despite projecting a 4.5% GDP contraction this year, Moody's noted the Philippines' track record of prudent economic and fiscal management, as well as a robust banking system, contributing to stable funding access at moderate costs.

Finance Secretary Carlos Dominguez highlighted that the country entered the pandemic with ample buffers, allowing for a PHP1.7-trillion recovery program without compromising fiscal health.