Moody's Corporation (NYSE: MCO) said it has agreed to acquire a minority stake in Philippine Rating Services Corporation, a domestic credit rating agency based in Manila. The financial terms of the transaction were not disclosed.
PhilRatings will continue to operate independently, retaining its own management, governance and credit rating processes. The investment makes Moody's the first global credit rating agency to take a stake in a domestic rating agency in the Philippines and expands its network of domestic rating agency affiliates in the Asia-Pacific region.
The deal comes as domestic corporate bond markets in the ASEAN region remain large, with outstanding domestic corporate bonds exceeding twice the size of cross-border holdings. The Philippines has more than $100 billion in planned infrastructure investment over the next three years.
Wendy Cheong, managing director and regional head of Asia Pacific at Moody's Ratings, said strong domestic debt markets are essential to supporting sustainable economic growth and that PhilRatings' local insight complements Moody's global credit views. Angelica B. Viloria, president of PhilRatings, said Moody's global standards and technical support will help advance the agency's mission to strengthen credit market infrastructure in the Philippines.
Moody's employs approximately 16,000 people across more than 40 countries.
