Moody's to buy minority stake in PhilRatings
Moody's is betting that Philippine bond-market growth and infrastructure funding needs will drive demand.
U.S. financial services firm Moody's Corp. has reached an agreement to acquire a minority stake in Philippine Rating Services Corp., a move driven by the company's belief that the burgeoning bond market and infrastructure pipeline in the Philippines will fuel demand for domestic credit ratings. This marks the first investment by a global credit rating agency in a Philippine ratings firm.
PhilRatings will maintain its independent operations, led by its current management and governance structure, under the oversight of Moody's. The exact terms of the deal remain undisclosed.
The transaction will bolster Moody's presence in the Asia-Pacific region, where the firm already has affiliates engaged in domestic rating activities. Moody's cited over $100 billion in projected Philippine infrastructure investments across the next three years, highlighting the country's substantial financing potential. Wendy Cheong, Moody's Managing Director and Regional Head for Asia Pacific, emphasized that PhilRatings' deep understanding of the Philippine market would complement Moody's global credit assessments for local investors.
She further noted that PhilRatings' expertise would enhance Moody's global credit insights for domestic stakeholders.
In Southeast Asia, the value of domestic corporate bonds surpasses twice that of cross-border holdings, underscoring the critical role of local debt markets in capital mobilization. As the Philippine market expands, Moody's anticipates that credit ratings and research will assist companies in accessing new sources of capital, refine their funding strategies, and provide investors with enhanced transparency.
Angelica Viloria, President of PhilRatings, highlighted that Moody's global standards, technical support, and industry practices would bolster the Manila-based firm's capacity to deliver high-quality credit ratings and research for the Philippine market. Moody's involvement as a minority stakeholder further reinforces PhilRatings' dedication to trust, credibility, and industry-leading credit ratings and research.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
