If our country can get to capitalize on this two, plus the 3 factors cited by Moody’s above, then we should have an even better economy and business environment. Snowball effect. But it shouldn’t stop there.
Finally. As partly expected by most of us early this year. Our beloved country has completed its rise to investment rating from the 3 major ratings agencies, with Moody’s giving the Philippines Baa3 just today.
Fitch started the favorable upgrade to BBB- in March this year, then S&P followed, also with a BBB- rating in May.
The latest upgrade from Moody’s is based on our country’s strong sustained growth, political stability and improved governance. Ahem.
Given the recent turn of events of alleged widespread misuse of government funds, will that change the opinion of these agencies? Though outlook-wise, I would say our economy is still upbeat barring external glitches such as from the US (partial government shutdown, debt ceiling).
Being investment grade means the country is a good place to put your money into, so ideally, this should increase foreign investments in the country. Likewise, this means our country can meet its debt obligations, akin to a low risk customer, as such cost of borrowing for the country should be lower.
If our country can get to capitalize on this two, plus the 3 factors cited by Moody’s above, then we should have an even better economy and business environment. Snowball effect. But it shouldn’t stop there. But rather, the favorable outlook and enhanced trust from the rest of the investing world should trickle down, through food on the table, better finances and stable jobs, hopefully, for every Juan.
And if expert foreign agencies see the Philippines as investment grade, shouldn’t every Juan invest in the country as well?
Lastly, I wonder how our stock market will take this. Or has it been factored in long ago?