Global credit rating giant Moody’s Corporation is taking a minority stake in Philippine Rating Services Corporation (PhilRatings), strengthening its presence in the country as the domestic debt market continues to expand.

Moody’s announced the agreement on 14 September, saying the investment will support the development of Philippine debt capital markets while adding local market expertise to its global credit views.

Supporting sustainable economic growth

“Strong domestic debt markets are essential to supporting sustainable economic growth,” said Wendy Cheong, managing director and regional head of Asia Pacific, Moody’s Ratings.

Manila-based PhilRatings is a leading domestic credit rating agency that provides ratings and research for the Philippine market.

Following the investment from Moody’s, it will continue to operate independently, retaining its own management, governance and credit rating processes.

Infrastructure investments worth over $100 billion

The transaction comes as the Philippines prepares for more than $100 billion in planned infrastructure investments over the next three years, potentially increasing demand for financing and deepening the need for credit ratings and research.

Moody’s said domestic corporate bonds outstanding across ASEAN are more than twice the size of cross-border holdings, highlighting the importance of local debt markets in the region.

PhilRatings president Angelica B. Viloria said Moody’s global standards and technical support would help strengthen credit market infrastructure in the Philippines.

“Moody’s Ratings’ global standards, best practices and technical support will help us advance our mission to strengthen the credit market infrastructure in the Philippines,” Viloria said.