Moody’s in town; investment grade seen

MANILA, Philippines - A team from Moody’s Investors Service is set to arrive today to conduct a weeklong examination of the Philippine economy as the government hopes to secure its third investment grade rating.

“The due diligence visit will be for the entire week,” Editha Martin, deputy director of the central bank’s investor relations office, said in a text message over the weekend.

Claro Fernandez, investor relations chief, said Moody’s team will be led by Christian de Guzman, a Filipino and senior analyst and vice president for Sovereign Ratings Group of the company.

Last Friday, Bangko Sentral ng Pilipinas (BSP) governor Amando Tetangco Jr. said the New York-based debt watcher is scheduled to visit this week, which is expected to be followed by a committee meeting back home.

Tetangco said the Philippines could gain an investment-grade status from Moody’s “sooner than earlier expected” after it put the country’s credit rating of Ba1, the highest junk grade, “on review for upgrade” last week.

Moody’s has held back from putting the country under investment-grade scale despite its rivals, Fitch Ratings and Standard & Poor’s Ratings Services (S&P), granting such status last March and May, respectively.

Fernandez said among the agenda is a meeting with senior economic officials including Finance Secretary Cesar Purisima and National Treasurer Rosalia de Leon.

An “update of all economic sectors” will also be conducted.

During previous credit rater visits, Aquino administration officials presented efforts to foster budget discipline, including tax administration measures to raise revenues and to lower the country’s debt stock.