Moody’s Investors Service affirmed the Philippines’ credit rating of “Baa2” with a “stable” outlook?a vote of confidence on the ability of the economy to cushion the effects of COVID-19 and to post a solid recovery over the near term.

The affirmation of the Philippines’ “Baa2” rating with a “stable” outlook comes amid a series of credit rating downgrades and negative outlook revisions by Moody’s worldwide.

As of end June, Moody’s has downgraded the credit ratings of 18 sovereigns and revised to “negative” the outlook on the ratings of 27 sovereigns.

“The rating affirmation and stable outlook reflect Moody’s view that the fortification of the government’s fiscal position in recent years provides a buffer against a rise in public indebtedness due to shocks such as the ongoing global coronavirus outbreak. Relatedly, the track record of prudent economic and fiscal management, and a robust banking system, contribute to the stable access to funding at moderate costs and support prospects for fiscal consolidation and debt stabilization after the shock subsides,” the debt watcher said.

Two of the country’s top economic officials welcomed the latest rating decision of Moody’s.

“We thank Moody’s for recognizing our country's strengths in the face of this unprecedented global crisis," Finance Secretary Carlos Dominguez III said. “We also thank the two chambers of the Congress for their close working relationship with the Executive Department as manifested by their continuous support for presidential policies and timely action on our priority legislative measures that have become our shield in protecting the country's sterling credit standing before the international and domestic investor community.”

“The affirmation of our credit rating by Moody’s?together with the recent favorable actions on the Philippines by other credit rating agencies?show that important stakeholders from the international community recognize that the Philippines is on the right track as far as managing the effects of the COVID-19 crisis is concerned,'' said Bangko Sentral ng Pilipinas Gov. Benjamin Diokno,

In May, Fitch Ratings and S&P Global affirmed the country’s BBB and BBB+ ratings, respectively, with both ratings being assigned a “stable” outlook.

In June, Japan Credit Rating Agency (JCR) upgraded the country’s credit rating by a notch from BBB+ to A-.

Earlier in February, another Japanese CRA, Rating and Investment Information Inc., upgraded the Philippines’ rating to BBB+. IRO