The Philippines’ credit rating was raised by Moody’s Investors Service today, bringing the country to two levels below investment grade, after the government took steps to reduce its budget deficit.
The country’s foreign and local currency long-term bond ratings were increased to Ba2 from Ba3, Moody’s said in a statement today. The outlook is stable.
President Benigno Aquino is going after tax evaders, smugglers and corrupt officials to increase revenue and narrow the budget deficit from a record 314 billion pesos in 2010. The Philippines reported a budget surplus in April.
The decision was driven by “the progress made in fiscal consolidation by the new Aquino administration; and the sustained nature of macroeconomic stability, coupled with continued strength in the external payments position, against a background of a significant pick-up in the momentum for economic growth,” Moody’s said.
Source: bloomberg.vom
Vivek Agrawal
Summer Intern-Fundamental Analysis
DENIP Consultants Pvt Ltd.
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