Philippines Receives Major Vote of Confidence from Moody's Investors Service

Strategic Insights -

President Gloria Macapagal-Arroyo stated that the latest sovereign credit rating upgrade of the Philippines by Moody's Investors Service is a significant vote of confidence in the economic reforms she has undertaken since taking office in 2001. The upgrade reflects progress in reining in fiscal deficit and reduced dependence on external financing. President Arroyo emphasized that the upgrade has direct benefits for Filipinos, including increased investment in vital infrastructure, education, and healthcare. Her administration will remain committed to reform and modernization efforts.

Key Takeaways:

  • The Philippines received a sovereign credit rating upgrade from Moody's Investors Service, with a changed rating outlook to "stable" from "negative".
  • The upgrade was attributed to progress in reining in fiscal deficit and reduced dependence on external financing.
  • President Gloria Macapagal-Arroyo emphasized that the upgrade has direct benefits for Filipinos, including increased investment in vital infrastructure, education, and healthcare.
  • The government aims to meet its deficit reduction target for the year as a whole.
  • Moody's vice president Thomas Byrne stated that based on fiscal performance through the first three quarters of 2006, the government's prospects for meeting its deficit reduction target seem favorable.
  • President Arroyo stressed that her administration will remain vigilant in its efforts to reform and modernize the nation.

Statistics:

  • The Philippines' fiscal deficit has been reduced.
  • The country's reliance on external financing has decreased.
  • The government aims to balance its budget.
  • Moody's upgraded the Philippines' sovereign credit rating.
  • The upgrade reflects improved fiscal performance.
  • The government's deficit reduction target for the year 2006 seems likely to be met.

Sources:

  • "President Arroyo says Moody's upgrade a vote of confidence in economic reforms". PNA. 2009-11-03. (Exact format from original source [PNA])