A little more than two years after the Aquino administration took office, the Philippines has successfully placed itself just one notch below investment grade in all three major credit ratings agencies after nine positive ratings action since July 2010.
Moody’s on Monday upgraded the Philippines’ foreign and local currency long-term bond ratings to Ba1 from Ba2 with a stable outlook on account of sustained economic growth, strengthening external payments position, improving fiscal dynamics and implementation of governance reforms.
“President Aquino reversed a decade’s worth of credit rating decline after a little more than two years of serving in office. This just shows how good governance can bring about good economics,” Finance Secretary Cesar Purisima in a press statement said.
The Philippines continues to be a strong performer in the current global economic climate, achieving a respectable growth rate of 6.1 percent in the first half of the year.
Revenue collection continues to expand on the back of strong and steady performances of the Bureau of Internal Revenue and Bureau of Customs at a rate faster than nominal gross domestic product (GNP) growth.
The country’s foreign exchange reserves continue to provide a healthy buffer from external shocks, and are bolstered by sustained growth in dollar remittances and business process outsourcing revenues.