“Challenging Global Environment to Test Asia’s Robust Credit Fundamentals,” a report by Moody’s Investors Service stated the following:
Scaled down engagement in global trade under the Trump administration would seem risky to trade and investment partners of the US.
If the US tightened its rules on global outsourcing, high-value manufacturing exporters such as Korea, Taiwan, India, Malaysia, and the Philippines would become liable to enormous risks.
Asian countries lost their opportunity to export their goods and services to major markets because of the withdrawal of US from the Trans-Pacific Partnership (TPP). The earnings of business process outsourcing companies are a major source of foreign exchange for the Philippines.
Tightening of US Federal Reserve policy, China’s trilemma, increasing advantages in Asian economies and political developments in Europe are other risks which can affect the Philippines.
The Philippines is one of the 10 countries in Asia to have a stable outlook on the banking system. They also got a Baa2 rating for sovereign debt.
On a brighter note, the Philippines got a BBB rating from S&P Global Rating which the minimum investment grade. This could have a positive effect on BPO services.