Big business sees renewed confidence

THE Makati Business Club (MBC) on Friday lauded the government for Moody’s improved rating outlook on the Philippines and the completion of the country’s second global peso bond sale, saying these developments reflect renewed confidence in the economy.

“The latest revision by Moody’s Investor Service of its credit outlook on Philippine foreign and local currency bonds to positive from stable and the recent successful issuance of 25-year global peso bonds worth an equivalent $1.25 billion are, without doubt, manifestations of the international investment community’s interest and confidence in the country and foreign investors’ sign of faith in the Aquino administration’s economic vision and fiscal program,” Peter Angelo Perfecto, MBC executive director, said in a statement.

Angelo succeeded Bertie Lim, who President Aquino appointed as tourism secretary last year.

Moody’s on Thursday raised its outlook on Manila’s Ba3 foreign and local currency bond from stable to positive. The New York-headquartered debt watcher said it did so because of the strengthening external payments position of the Philippines.

Moody’s cited Manila’s “successful conduct of monetary policy which has anchored inflation expectations and has also helped to lower the government’s cost of funding.”

The rating firm’s upgrade came as the Philippines sold abroad $1.25-billion worth of 25-year peso-denominated bonds—the country’s first major borrowing for the year and the biggest debt sale from Asia in the past five years. –Ben Arnold O. de Vera, Manila Times