Federalism shift has downside risks to economy: Moody's


Posted at Jul 23 2018 03:59 PM

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MANILA -- Uncertainty over federalism poses some downside risks to the Philippines, debt watcher Moody's Investor Services said Monday.

Issues like revenue and expenditure sharing are "still up in the air," said Moody's vice president and senior credit officer Christian De Guzman.

"I think we have to acknowledge that some local government units are not as prepared to handle the responsibilities that come with these larger spending commitments," De Guzman told ANC. 

Moody's on Friday affirmed the Philippines' "Baa2" investment grade rating with a stable outlook.