Moody’s: Philippines bond Baa2

Moody’s Investors Service said it assigned a provisional Baa2 rating to the government of the Philippines’ dollar bond offering due in 2040.

The bond rating is supported by improvements in government finances with ongoing debt reduction, Moody’s said.

The country has favorable prospects for strong economic growth, the agency said.

As a net oil importer, the country stands to benefit from a prolonged period of lower oil prices via lower inflation and a compression of its import bill, Moody’s said.

It is also less reliant on a slowing China, while its solid current account surplus provides resilience to shifts in global liquidity conditions in the context of a normalization of U.S. monetary policy, the agency said.

Credit constraints include low per capita income and revenue mobilization, which remains one of the weakest among investment-grade countries, Moody’s said.

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