Moody’s completes PhilRatings acquisition

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October 7, 2026 | 12:00am

MANILA, Philippines — Moody’s Corp. has completed its acquisition of a 19.99-percent stake in Philippine Rating Services Corp. (PhilRatings), expanding its regional presence as it sees corporate expansion and infrastructure needs supporting Philippine bond issuance.

In a written interview with The STAR, Wendy Cheong, managing director and regional head of Asia Pacific at Moody’s Ratings, said the transaction was completed in September.

“Moody’s acquired a direct, non-controlling 19.99 percent equity interest in PhilRatings,” Cheong said.

The ownership percentage was not disclosed in Moody’s initial announcement on Sept. 14, when it said it had agreed to buy a minority stake in the domestic credit rating agency.

The investment makes PhilRatings the sixth domestic credit rating agency in Moody’s Asia-Pacific affiliate network and supports its expansion in emerging markets.

Cheong said the outlook for Philippine corporate bond issuance is generally positive, citing economic growth, favorable demographics and infrastructure investment needs.

“As companies expand and pursue new investment opportunities, many are likely to seek additional funding, including through the debt capital markets,” she said.

Further development of the domestic bond market could also encourage a wider range of companies to issue bonds, she added.

Moody’s cited more than $100 billion in planned Philippine infrastructure investment over the next three years, based on publicly announced government plans under the Philippine Development Plan 2023-2028.

Cheong said implementation would depend on project execution and economic conditions. Financing would come from government budgets, bank loans, public-private partnerships and capital markets, with the bond market’s eventual contribution dependent on funding costs, investor demand and project requirements.

Over the first 12 to 24 months, Moody’s expects to collaborate with PhilRatings through analytical knowledge exchanges, learning and development initiatives and industry engagement.

PhilRatings will retain its own management, governance structure, rating methodologies and analytical processes. Moody’s will share practices and expertise for informational and reference purposes.

Meanwhile, Cheong identified higher energy costs as a key risk to the broader Philippine corporate sector, potentially keeping inflation elevated, eroding purchasing power and weakening consumer spending.

These pressures could weigh on earnings and profit margins, particularly in businesses serving consumers.

“That said, we view these risks as manageable for issuers rated by Moody’s Ratings,” she said.