The Philippines鈥 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鈥檚 Ratings said the reshuffle in President Ferdinand Marcos Jr.鈥 economic team and Secretary Frederick Go鈥檚 appointment as finance chief isn鈥檛 expected 鈥渢o materially change our assessment of the Philippines鈥 economic or fiscal strength or its overall credit profile.鈥
鈥淲e expect broad policy continuity under the Marcos administration,鈥 said Young Kim, Moody鈥檚 assistant vice president in Singapore. Moody鈥檚 rates the Philippines two levels above junk.
S&P Global Ratings also said the political events are unlikely to impact the country鈥檚 overall policy direction. 鈥淲e do not expect the ongoing events related to flood-control projects to lead to political instability,鈥 said YeeFarn Phua, director at S&P in Singapore.
Mr. 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鈥檚 taken the nation by storm. Mr. Go was named finance head to replace Ralph Recto, who was appointed new executive secretary.
S&P said its outlook on the Philippines鈥 sovereign rating remains positive, adding it expects the 鈥渟ignificant enhancement鈥 in credit metrics achieved in the past 10 years to continue.
Under Mr. 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, Mr. Go had pledged to promote fiscal strength and growth. — Bloomberg
