The peso's steep depreciation against the US dollar is raising financial pressure on Philippine companies that carry foreign-currency debt or have dollar-linked expenses, according to a report from Philstar Biz, citing Moody's Ratings.
Moody's noted that corporates in sectors such as utilities, energy, and infrastructure are most exposed to currency swings because they often borrow in dollars while earning revenue in pesos. The peso has weakened significantly in recent months, hitting multi-year lows against the greenback.
Despite the headwinds, the credit rater said most rated corporates in South and Southeast Asia, including the Philippines, still have enough liquidity and hedging measures to withstand further depreciation. Moody's expects selective stress for weaker credits but no broad-based deterioration.