Moody’s: PH has ‘low’ political risk level

The Malacañang Palace (Facebook photo)

MANILA – According to debt watcher Moody’s Investor Service, the Philippines is likely to continue economic reforms next year although at a slower pace as a new president takes office.

“The extent to which the next leader will institutionalize or reverse reforms conducted by Mr. Aquino’s administration – especially positive changes related to fiscal management – is unclear,” Moody’s says in a report.

“Nevertheless, our assessment of domestic risk in the Philippines at ‘Low’ is in line with large democracies such as Indonesia and India, where policy challenges are often posed by democratic transitions,” the statement continues.

Moody’s rating ranges from ‘very low’ to ‘high,’ with Malaysia and Singapore having the highest ratings in Southeast Asia with ‘very low’ political risk scores. On the other hand, Thailand has the worst rating in the region with a ‘moderate’ score.

Prior the present administration, the Philippines has rated poorly in Moody’s ratings as ‘latter years of the two preceding administrations… were fraught with political turmoil.’