Moody's upgrades Philippines credit rating

Philippine Presidential Communications Secretary Raul Carandang said Thursday the latest credit upgrade of the Philippines by Moody's Investor Service is proof of the international community's confidence in President Benigno Aquino III's fiscal management. Carandang said the Moody's move to upgrade government rating from Baa3 to Ba1 further boosted confidence in the Philippines' economy especially after Fitch Ratings and Standard and Poor's Ratings Services had likewise given Manila a good investment rating. "So there's no question about our country's credit rating anymore. But the pleasant surprise was that we were also given a positive outlook...meaning the prospects of another upgrade are quite positive as well," Carandang said. Carandang stressed that the good rating credited the robust economic performance, the ongoing fiscal and debt consolidation, the political stability and improved governance of the country. Recent controversies over alleged misuse of government funds should not affect the country's credit worthiness and fiscal performance, Carandang said, adding the fiscal reforms already initiated to actually strengthen the economy would continue. "The reforms...moved into a more politically sensitive area, which is the reform of pork barrel spending, but those reforms... by the Aquino administration are actually positive in terms of improving the country's credibility and its credit-worthiness," he further stressed, though he said the government still expects some resistance to some of its painful reforms.