Moody's ups Philippines view to positive

Moody's Investors Service said it changed the outlook on the government of the Philippines' Ba3 foreign-and local-currency bond ratings to positive from stable.

The outlook revision reflects the strengthening trend in the Philippines's external payments position, which has significantly reduced the vulnerability of government finances to external shocks, Moody's said.

It also considers the successful conduct of monetary policy, which has anchored inflation expectations and also has helped to lower the government's cost of funding, the agency said.

The action also applies to the Philippines's Ba3 ceiling for foreign-currency bank deposits. The outlook on the Ba1 country ceiling for foreign-currency bonds, however, remains stable and the not-prime short-term ratings and ceilings remain unaffected by this action, Moody's said.

These ceilings act as a cap on ratings that can be assigned to the foreign-currency obligations of other entities domiciled in the country, the agency said.

In a related action, the outlook on the issuer rating for the country's central bank, the Bangko Sentral ng Pilipinas, also is changed to positive from stable, Moody's said.

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