Moody's: Climate threat high, but credit rating safe

Global debt watcher Moody’s Ratings said the Philippines and several Asian peers face high credit exposure to physical climate risks, but the country is relatively better positioned due to its stronger fiscal capacity to build resilience.

- By DERCO ROSAL

In a report published last week, Moody’s noted that the Philippines, Vietnam, Indonesia, and Sri Lanka “all have high credit exposure to physical climate risks,” each scoring a four on a one-to-five scale (with five as the highest exposure).

The Philippines’ climate risk score is higher than that of Thailand, Cambodia, Laos, and Malaysia, which all scored three.

However, the country’s fiscal strength stands out at a Baa2 stable rating. This is higher than Malaysia and Bangladesh (both around Ba2), India (B2), Pakistan (Caa3), and the Maldives, Sri Lanka, and Laos (all around Ca). The Baa2 rating is lower than Cambodia and Thailand (both around A3), and Vietnam (Ba2).