Moody's ups Philippines

Moody's Investors Service said it upgraded the Philippines' foreign- and local-currency government ratings to Ba3 from B1, country ceiling for foreign-currency bank deposits to Ba3 from B1 and country ceiling for foreign-currency bonds to Ba1 from Ba3.

The outlook is stable.

The change in the foreign-currency bond ceiling is based on a revised assessment of the risk of an external payments moratorium to low from moderate, Moody's said.

The upgrade was prompted by the high degree of resiliency exhibited by both the country's financial system and external payments position in face of the global financial and economic crises, the agency said.

Budget pressures are more severe than had been originally expected this year by the government, the agency said, but the larger fiscal deficit should be able to get financing from domestic and foreign funding sources.

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