The Bangko Sentral ng Pilipinas (BSP) on Thursday said the change by Moody’s Investors Service on the outlook on the country’s Ba3 foreign and local-currency bond ratings to positive from stable is a proof of confidence in the economy’s resiliency.
BSP Governor Amando Tetangco Jr. said this is the second ratings action by Moody’s on the domestic economy in the past 18 months.
“This is a clear vote of confidence in our positive credit story,†he said.
Moody’s said the change was due to the improvement in the country’s external payments position, the successful conduct of monetary policy, as well as the improved prospects for economic reform policies.
Tetangco said the country’s balance of payments (BOP) surplus reached an all-time high of US$ 60.6 billion as of last November.
“With the Philippines’ strengthening credit profile and the resilience and strength that the Philippine economy continue to demonstrate in the face of a sluggish global economic recovery, we can expect brighter prospects ahead,†he said.
Moody’s said an upward revision of the ratings depends among others on the central bank’s capacity to continue to reduce inflationary pressures amid the situation of higher food and fuel prices and volatile capital flows. - pna
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