Moody’s rating supports legislative growth agenda 

The affirmation by Moody’s Investors Service of the country’s sovereign credit rating of investment grade Baa2 will boost the legislative agenda to entice more investors into the country, Senator Sherwin T. Gatchalian said in a report by BusinessMirror.

“This [affirmation] bodes well with our legislative agenda of improving investor confidence and attracting foreign investments critical for the country to underpin sustained economic growth,” Gatchalian, chairman of the Senate Committee on Ways and Means, said.

The Baa2 rating is a notch higher than the minimum investment grade of Baa3. The credit rating agency also affirmed its stable outlook for the country.

A key measure in the priority agenda of Congress and the Executive in the 19th Congress is the proposed Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (“Create More”). Gatchalian, its main author, is advocating immediate passage of the bill.

Increasing foreign direct investments would lead to job generation, support domestic consumption, and further improve the country’s fiscal position, the solon stressed.

With the expected enactment of the “Create More” and other measures supportive of economic development, Gatchalian expressed optimism that the country would secure an investment rating upgrade moving forward. “Create More” is a priority measure of the Marcos administration.

“Now that we have recovered more decisively from the economic impact of the pandemic, we look forward to continuing the momentum for growth, and possible get an investment rating upgrade,” Gatchalian said.

In affirming the country’s investment grade rating, Moody’s traced its decision to several factors, including the country’s reforms to liberalize the economy, fiscal consolidation efforts, and robust macroeconomic fundamentals.

Meanwhile, the Japan-based Rating and Investment Information Inc. recently upgraded the Philippine sovereign credit rating to “A-” with a stable outlook.