Asia-Pacific economies like the Philippines (pictured) are seen staying strong despite the slower-than-expected recovery of the global economic from the financial crisis of 2008, international debt watcher Moody’s Investor Service said. AP FILE PHOTO
MANILA, Philippines—Asia-Pacific economies are seen staying strong despite the slower-than-expected recovery of the global economic from the financial crisis of 2008, international debt watcher Moody’s Investor Service said.
In its Sovereign Ratings on Asia Pacific Economic Cooperation (Apec) countries released this week, Moody’s said the prospects of countries like the Philippines, which was on review for a likely upgrade in its credit rating, would not be affected despite economic turmoil in advanced nations.
Moody’s said Asia-Pacific economies might still be affected by the slow pace of recovery in Europe and the United States, as well as the normalization of monetary policies in developed markets.
“However, Moody’s does not expect balance-of-payments crises, not even in those countries whose exchange rates have faced the most pressures since May 2013. Large holdings of official foreign exchange reserves across the board in emerging market Apec and flexible exchange rate policies provide formidable buffers to capital outflows,” Moody’s said in a statement.
Of the 20 rated member-sovereigns in Apec, 11 showed unchanged ratings between September 2008 and September 2013, while seven were upgraded, and only two were downgraded during this period of global financial crisis and economic recession.
The numbers reflect the relatively stronger performance of the Apec sovereigns in East Asia and Latin America. “Underscoring the region’s stability, the ratings of 18 of the 20 member sovereigns that Moody’s rates currently have stable outlooks, while Peru’s Baa2 carries a positive outlook and the Philippines’ Ba1 is under review for upgrade,” Moody’s said.
Moody’s is the last major credit ratings firm that still considers the Philippines below investment grade.