Moody’s: Virus surge, lockdowns ‘credit negative’

Moody's Investors Service views the spike in COVID-19 cases and subsequent lockdowns in Metro Manila and nearby provinces as 'credit negative' for the Philippines.

The debt watcher warns that these measures may delay economic recovery, hinder fiscal consolidation, and exacerbate social risks.

While the current restrictions are less severe than previous ones, they contrast with easing measures seen elsewhere in Southeast Asia where infections are declining.

Moody's also notes that the lockdown is unlikely to improve infection rates and threatens the country's 7% growth forecast for 2021.