By Kim Arveen Patria
Affirming the Philippine economy's strong performance and stable financial system, debt watcher Moody's Investors Service has raised the country's local and foreign currency long-term bond ratings to Ba1 from Ba2.
This is seen to result in lower costs for the Philippines when it taps debt markets to bridge gaps between budget and spending.
Moody's follows two other major credit rating agencies that have earlier put the Philippines just one level shy of investment grade.
"It's been a decade since all three major ratings agencies rated the Philippines a notch below investment grade," Finance Secretary Cesar Purisima said via his Twitter account.
"This is the 9th positive ratings action since President Aquino took office and has brought us on the cusp of investment grade rating," he added.
Key drivers for the upgrade include the country's improved economic performance despite weak global demand; enhanced prospects for growth over the medium-term; and stable financial system.
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