Moody’s, citing reforms, affirms investment's grade

Credit watchdog Moody’s Ratings (Moody’s), citing the series of economic reforms under President Ferdinand Marcos Jr., has affirmed the Philippines' investment-grade credit rating of “Baa2” with a “stable” outlook.

Moody’s cited the country’s reforms to liberalize the economy, fiscal consolidation efforts, and robust macroeconomic fundamentals for its latest action.

According to Moody’s, “The passage of reforms over the past several years to liberalize the Philippine economy will support medium-term growth potential by supporting a business-friendly environment and attracting foreign investments.”

During the second quarter of 2024, the Philippine Statistics Authority reported a 6.3 percent year-on-year gross domestic product (GDP) growth.

Moody’s expects FDI inflows to continue rising in 2024-2025. These inflows will be driven by strong investor interest in the energy, manufacturing, and information and communications sectors.