Market cheers new upgrade from Moody’s

MANILA, Philippines - Investors cheered Moody’s Investors Service’s upgrade of the Philippines sovereign rating to investment grade.

The Philippine Stock Exchange index (PSEi) 0.40 percent or 25.39 points to 6,387.65, rebounding from early losses that nearly pushed the main index to drop to the 6,200 level.

“Share prices appeared poised to take a breather and snap a two-session run as the still fluid situation in the continuing fiscal drama in the US left investors clueless,” said Justino Calaycay Jr., an analyst at Accord Capital Equities Corp.

“The PSEi had dropped to depths of 60 points but steadily clawed back minutes before news that Moody’s gave the country the last of three expected ratings upgrade,” Calaycay said.

Moody’s upgraded the Philippines’ credit rating to Baa3 from Ba1, the highest mark in the junk grade status, given the country’s robust economic performance, ongoing fiscal and debt consolidation and political stability.

“Now that all three major rating agencies have an investment grade rating on the country, we are even more excited about the economic prospects of the Philippines,” said PSE president and CEO Hans B. Sicat.

“As investors train their eyes on us, we hope to continue to interest them behind the growth outlook of our listed companies and the variety of investment products that we will soon be offering,” Sicat said.