Moody's Corporation announced its agreement to acquire a minority stake in Philippine Rating Services Corporation (PhilRatings), a prominent domestic credit rating agency based in Manila. This strategic investment aims to blend Moody's global credit perspectives with PhilRatings' deep understanding of the local Philippine market. PhilRatings will maintain its operational independence, including its management, governance, and credit rating processes, following Moody's investment. This move marks Moody's Ratings as the first global credit rating agency to invest in a domestic Philippine counterpart, thereby expanding its Asia-Pacific network of rating agency affiliates.
The acquisition is driven by the significant growth potential within the Philippine debt capital markets. The ASEAN region's domestic corporate bonds are more than double the size of cross-border holdings, and the Philippines alone has over $100 billion in planned infrastructure investments slated for the next three years. This highlights the increasing need for robust credit ratings and research to help issuers access capital, formulate funding strategies, and enhance transparency for investors.
Wendy Cheong, Managing Director and Regional Head of Asia Pacific for Moody's Ratings, emphasized that PhilRatings' local market insight complements Moody's global credit views. Angelica B. Viloria, President of PhilRatings, stated that Moody's global standards and technical support would advance PhilRatings' mission to strengthen the credit market infrastructure in the Philippines. The terms of the transaction were not disclosed.
