MANILA: The Philippines’ credit profile is expected to be unaffected under the new finance minister with rating agencies, which rank the nation as investment grade, expecting policy continuity.
Moody’s Ratings said the reshuffle in President Ferdinand Marcos Jr.’ economic team and Secretary Frederick Go’s (pic) appointment as finance chief isn’t expected "to materially change our assessment of the Philippines’ economic or fiscal strength or its overall credit profile.”
"We expect broad policy continuity under the Marcos administration,” said Young Kim, Moody’s assistant vice president in Singapore. Moody’s rates the Philippines two levels above junk.
S&P Global Ratings also said the political events are unlikely to impact the country’s overall policy direction. "We do not expect the ongoing events related to flood-control projects to lead to political instability,” said YeeFarn Phua, director at S&P in Singapore.
Marcos earlier this week announced changes to his Cabinet after the resignations of his executive secretary and budget chief who were embroiled in a widening corruption scandal that’s taken the nation by storm. Go was named finance head to replace Ralph Recto, who was appointed new executive secretary.
S&P said its outlook on the Philippines’ sovereign rating remains positive, adding it expects the "significant enhancement” in credit metrics achieved in the past 10 years to continue.
Under Recto, the Philippines has raised additional taxes to boost revenue as it targets a narrower budget deficit by 2028. In his first comments since the appointment, Go had pledged to promote fiscal strength and growth. - Bloomberg
