Moody's and PhilRatings launch partnership to widen business access to financing

Global credit rating firm Moody's Ratings and the Philippine Rating Services Corporation (PhilRatings) have formally launched a strategic equity partnership. According to Mindanao Times, the two firms say the tie-up could help Philippine businesses obtain more competitive financing.

The launch in Manila included a ribbon-cutting ceremony and an economic outlook forum. It follows Moody's purchase of a minority stake in PhilRatings, which is the country's first domestic credit rating agency. The firms said the partnership pairs Moody's global rating expertise with PhilRatings' knowledge of the local market. Its stated goals are to improve domestic credit assessments, promote transparency and support the growth of the capital market.

PhilRatings Chairman Christian Argos said the agency's role remains the same. "We exist to connect Philippine issuers with investors on terms both sides can trust," he said.

According to the report, the partnership comes as local companies face high borrowing costs and limited access to long-term funds, especially for expansion and infrastructure projects. By making local ratings more credible, the partners hope more firms can tap other funding sources beyond bank loans, particularly the domestic corporate bond market.

The partners said sectors with heavy capital needs could benefit, including transportation, renewable energy, telecommunications, logistics and manufacturing. They added that any financing would depend on market conditions and each company's credit profile. They also said a deeper, more transparent bond market could give institutional and retail investors more investment options, guided by independent ratings.

The partnership builds on the country's investment-grade standing. Moody's currently rates the Philippines Baa2 with a stable outlook.

PhilRatings Vice President and Head of Credit Rating Bogie Indiongco said bringing international rating standards to the local market would give companies, banks and investors more confidence. "When Philippine businesses can borrow affordably and transparently, everyone benefits," he said.