Moody's flags debt, climate risks in Phl's credit review

Moody's Ratings completed its periodic review of the Philippines’ credit profile, citing the economy’s strong growth prospects and stable fiscal metrics while warning of lingering risks from elevated debt costs, global uncertainties and climate change.

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In a report, Moody's said the review “does not announce a credit rating action” but reiterated the factors underpinning the country's current Baa2 rating and stable outlook.

“The Philippines’ Baa2 ratings are supported by the country's high economic growth potential and fiscal metrics that are broadly in line with similarly rated peers,” the debt watcher said.

Moody's noted that the Philippines has a strong access to domestic and international funding markets and ample foreign-currency reserves to weather the volatility in global capital flows.

“These credit strengths are balanced against its low per capita income, some constraints on the quality of institutions, which stand in contrast with high policy effectiveness, and the sovereign's high exposure to physical climate risks,” it said.