Moody's rates Philippines bonds Baa2

Moody's Investors Service said it assigned a Baa2 senior unsecured rating to the euro-denominated global bond offering due in 2027 issued by the government of the Philippines.

The rating mirrors the Philippines' issuer rating of Baa2 and a stable outlook.

The bonds are direct, unconditional and unsecured obligations of the government of the Philippines and will rank pari passu with all other senior unsecured debt obligations of the issuer, Moody's said.

The ratings are characterized by strong economic performance, a strengthening fiscal position and limited vulnerability to external shocks. These are balanced against per capita income and debt affordability, both of which, although improving, are structurally weaker as compared to similarly rated peers.

The country's relatively large economy and high growth potential supports its capacity to absorb shocks, the agency said.

The country's favorable demographics support steadily rising labor inputs and potential growth, while keeping the burden of aging-related costs on government finances low, Moody's said.

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