In the Philippine financial ecosystem, one institution stands apart as the pioneer and sole domestic credit rating agency recognized by the Bangko Sentral ng Pilipinas (BSP) for bank supervisory purposes. Philippine Rating Services Corporation, known as PhilRatings, has been assigning credit ratings since 1985 and was formally registered as an independent entity in March 1999.
A Unique Position in the Regulatory Landscape
PhilRatings occupies a distinctive role that no other domestic agency has replicated. Its credit ratings may be used for determining appropriate risk weights in ascertaining compliance with existing rules and regulations on risk-based capital requirements. The eligibility criteria for BSP recognition include a minimum five-year track record of issuing reliable ratings, a pool of experienced analysts, a competent board, an established rating methodology, and a demonstrated record of independence. The agency is also accredited by the SEC and its ratings are utilized by the Philippine Dealing and Exchange Corporation (PDEx) for listed securities.
Moody’s Acquires Minority Stake in September 2026
In a development that signals growing international confidence in Philippine domestic credit infrastructure, Moody’s Corp. agreed in September 2026 to acquire a minority stake in PhilRatings. The global ratings firm said the investment is part of its efforts to expand its network of domestic rating agency affiliates in the Asia-Pacific region, though specific terms were not disclosed. “Strong domestic debt markets are essential to supporting sustainable economic growth,” said Wendy Cheong, managing director and regional head of Asia-Pacific at Moody’s Ratings. “PhilRatings has built deep insight into the local market, and its ratings serve as a strong complement to Moody’s global views on credit for investors in the Philippines”.
The $100-Billion Infrastructure Pipeline Driving Demand
Moody’s noted that the Philippines’ domestic bond market continues to demonstrate potential for growth, supported by over $100 billion in planned infrastructure investments over the next three years. As the domestic bond market develops, credit ratings and research will play a meaningful role in helping issuers access new sources of capital, develop funding strategies, and signal transparency to support investor confidence. PhilRatings President Angelica B. Viloria said Moody’s global standards and technical support will help advance the agency’s mission to strengthen credit market infrastructure in the Philippines.
The OECD’s Assessment of Local CRA Limitations
Despite PhilRatings’ pioneering role, the OECD’s 2024 Capital Market Review of the Philippines identified persistent challenges. The report noted that CRAs do not publish price lists or their reports, nor their methodologies, making it difficult for users to access and assess their analyses. Market participants also questioned their ability to maintain independence from issuers, and no international CRA following international practices had a local footprint at the time of the review. The SEC’s proposed 2026 regulatory overhaul directly addresses these concerns, requiring CRAs to publish greater information on governance, methodologies, and historical rating performance.
As the Philippine capital market matures, PhilRatings’ dual role—as both a domestic standard-bearer and an increasingly integrated node in the global rating network—positions it at the center of the country’s financial development story.
Leave a Reply