Moody's S&P Fitch Meaning

(Highest quality; EXTREMELY STRONG capacity to meet

Aaa AAA AAA
financial obligations.)

Aa1 AA+ AA+ (High quality; VERY STRONG capacity

Aa2 AA AA to meet financial obligations. It differs from
Aa3 AA- AA- the top-line rating only in small degree.)

(High quality; STRONG capacity to meet financial

A1 A+ A+
obligations
A2 A A but is somewhat more susceptible to the adverse effects
A3 A- A- of changes in circumstances and economic conditions.)

(Medium grade; ADEQUATE capacity to meet financial

Baa1 BBB+ BBB+
obligations
Baa2 BBB BBB but adverse conditions or changing circumstances are more
likely to lead to a weakened capacity to meet financial
Baa3 BBB- BBB-
commitments.)

Ba1 BB+ BB+ (Lower medium grade; LESS VULNERABLE but faces major
ongoing uncertainties and exposure to adverse conditions
Ba2 BB BB
which
could lead to inadequate capacity to meet financial
Ba3 BB- BB-
commitments.)

B1 B+ B+ (Low grade; MORE VULNERABLE and adverse business,

B2 B B financial, or economic conditions will likely impair its capacity
B3 B- B- or willingness to meet financial commitments.)

(Poor quality; CURRENTLY VULNERABLE and dependent

Caa CCC CCC
upon favourable conditions to meet commitments.)

Ca CC CC (Poor quality; CURRENTLY HIGHLY-VULNERABLE.)

C C (CURRENTLY HIGHLY-VULNERABLE to nonpayment.)

C D D (FAILED to pay one or more of its financial obligations.)

HILARIO, NICHOLE V. MARCH 13, 2015

AC1412 PRNFIN

The Philippines Credit Rating History

The Philippines received its first credit rating from Moodys and S&P in 1993
and from Fitch in 1999. Since then, the country has never gotten a rating
beyond the speculative grade. The best it has received so far is one notch
below investment grade. While the CRAs recognize the improved economic
and fiscal performance of the Philippines in recent years, they also note its
shortcomings. S&P in July 2012 raised the countrys credit rating from BB to BB+.
In June of the same year, Fitch kept its BB+ credit rating outlook for the
Philippines. Moodys rating, on the other hand, remains two notches below
investment grade. This means that at least for 2012, the much coveted
investment grade status will still remain elusive.
Current Credit Ratings under the Aquino Administration

Date Rated CREDIT AGENCY RATING

2014 May 08 Standard & Poors BBB STABLE
2014 Dec 11 Moodys Baa2 STABLE
2013 Mar 27 Fitch BBB- STABLE

S&P: BBB stable

Moodys: Baa2 stable

Fitch: BBB- stable

Standard & Poors credit rating for Philippines stands at BB+. Moodys rating for
Philippines sovereign debt is Ba1. Fitchs credit rating for Philippines is BB+. In
general, a credit rating is used by sovereign wealth funds, pension funds and
other investors to gauge the credit worthiness of Philippines thus having a big
impact on the country's borrowing costs.