The Philippines gets a positive outlook rating from Moody's

Moody's Investors Service upgraded yesterday, January 25, its outlook on the Philippines from “stable” to “positive”, citing the government's easing dependence on foreign loans. The ratings include those for long-term government foreign and local currency, foreign currency bank deposit ceiling, and foreign currency country ceiling.

Improved macroeconomic environment and good fiscal performance are mutually reinforcing each other as a stronger peso and lower domestic interest rates have significantly lowered debt service payments.

This positive outlook rating may pave the way for an actual credit ratings upgrade for the country. Thus, the government hailed the decision of the prestigious credit rating agency. A credit rating upgrade may entail cheaper foreign borrowing. It will likewise make the country more attractive to foreign direct investments – an area in which we are lagging behind four Southeast Asian neighbors, namely Singapore, Malaysia, Thailand and Indonesia.

The last time Moody's raised the country's credit rating was in November 2006. The agency then upgraded the rating from “negative” to “stable” credit rating.