For the third time this year, the Philippines has received yet another major credit rating upgrade. After the recent upgrades from Fitch and S&P, Moody’s has issued a rating of Baa3 which signifies that the country is now investment grade.
There are several reasons used as the basis for this upgrade, including a sustainable growing economy, improving government conditions, and low inflation rates. Overall, while the rest of the world is experiencing a slowdown and some uncertainty, the Philippine outlook remains optimistic. The Philippine economy expanded 6.8% in 2012 and 7.6% in the first half of 2013, which makes it one of the highest in the region.
|Agency||Investment Grade||Date Issued|
|Fitch||BBB-||March 27, 2013|
|Standard & Poor’s||BBB-||May 2, 2013|
|Moody’s||Baa3||October 3, 2013|
A big sector that fuels the steady growth of the economy is the BPO services sector. More and more business globally are now recognizing the Philippines as a top outsourcing destination. Reduced cost is not only the main reason for outsourcing to the Philippines, but also its globally talented pool of workers. Companies such as Key Discovery provide highly competent resources to various companies in the US and other countries.