Moody's: Bangko Sentral, rice reform laws 'positive' for PH


Posted at Feb 25 2019 01:47 PM | Updated as of Feb 25 2019 03:53 PM

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MANILA -- Recent economic reforms in the Philippines will be "positive" for its credit score, according to debt-watcher Moody's, which rates the Southeast Asian economy at investment grade.

A law that imposes tariffs on rice imports in place of quotas will "diminish price volatility" in the staple grain, Moody's said in a research note.

Expanding the supervisory oversight of the Bangko Sentral ng Pilipinas to include money services, credit granting businesses and payment system operators will "enhance financial stability," Moody's said.

"All these are credit positive, but doesn't necessarily mean there are triggers from an upgrade," Moody's analyst Christian de Guzman told ANC's Market Edge.

"Our stable outlook connotes a balance between positive and negative factors at the moment," he said, adding the Philippines still had a "hangover" from inflation and interest rate increases.

Moody's rates the Philippines at Baa2, or one notch above investment grade with a "stable" outlook.