A first in history: PH gets investment grade

(UPDATE) The Philippines bagged a landmark vote of confidence as global debt watcher Fitch raised the country's credit rating to investment grade Wednesday.

For the first time in history, the Philippines is deemed as an economy where it is safe for global investors to pour in capital.

Fitch Ratings said the country's long-term foreign-currency issuer default rating (IDR) is now up to BBB- from BB+. The long-term local-currency IDR has likewise been raised to BBB from BBB-.

An investment grade is seen to lower the Philippines' borrowing cost, thereby increasing opportunities for the government to save.

Related story: Why Aquino vetoed Magna Carta for the poor 

"The Philippine economy has been resilient, expanding 6.6% in 2012 amid a weak global economic backdrop," Fitch said in a statement posted on its website.

Key drivers for the credit rating hike, Fitch said, are strong external balance sheets, a persistent current account surplus and high remittances.

Fitch also lauded reforms implemented under the previous and present administrations, which it said led to "favorable macroeconomic outturns."

"Improvements in fiscal management begun under President Arroyo have made general government debt dynamics more resilient to shocks," Fitch said.

Fitch is the first debt watcher to give the Philippines an investment grade, even as two other rating firms place the Philippines only a notch lower.

Standard & Poor's considers the Philippines a BB+ market at present while Moody's Investors Service gave it a Ba1 rating.

Related story: More women hold diplomas vs. men

Welcoming the long-awaited credit rating upgrade, President Benigno Aquino III said the development will "encourage even greater interest and investments in our country."

"This is an institutional affirmation of our good governance agenda," Aquino said in a statement posted on the Official Gazette.

"Sound fiscal management and integrity-based leadership has led to a resurgent economy in the face of uncertainties in the global arena," he added.

Also commenting on the upgrade, Asian Development Bank Country Economist Norio Usui said it "can trigger the kind of investment that will help carry the country into its next phase of development."

"Prudent measures to attract investment, improve the business climate and diversify the economy have paved the way for growth," he added.

The ADB official however challenged authorities "to make that growth more inclusive by creating more and better jobs."

Related slideshow: Bustling Manila

Traders at the Manila Stock Exchange chat in front of an electronic board on January 31, 2003. Asian markets were mixed following another strong lead from Wall Street, where traders took heart from ... more 
Traders at the Manila Stock Exchange chat in front of an electronic board on January 31, 2003. Asian markets were mixed following another strong lead from Wall Street, where traders took heart from more upbeat US jobs numbers less 
1 / 3
AFP News | Photo By Joel Nito
Fri, Mar 15, 2013 7:17 PM PHT

 

Loading...

Editor’s note:Yahoo Philippines encourages responsible comments that add dimension to the discussion. No bashing or hate speech, please. You can express your opinion without slamming others or making derogatory remarks.

  • Sy moves up, Villar enters Forbes list of billionaires
    Sy moves up, Villar enters Forbes list of billionaires

    Eleven Filipinos are included in Forbes’ 2015 list of richest people in the world. Filipino-Chinese tycoon Henry Sy Sr. continues to be the wealthiest man in the Philippines. The 90-year-old SM supermalls, banking and property tycoon ranked 73rd among the world’s richest with an increased net worth of $14.2 billion from $11.4 billion last year. Sy’s net worth was attributed to the continued growth of his SM Investments Corp. and his more recent venture, the City of Dreams Manila resort and …

  • Jolo apologizes to Bong in visit
    Jolo apologizes to Bong in visit

    Cavite Vice Gov. Jolo Revilla wept and embraced his father as he apologized for the “accidental” shooting incident in their Ayala Alabang residence, the family’s spokesman said yesterday. Lawyer Raymund Fortun came out of the private room at the Asian Hospital and Medical Center in Muntinlupa City to speak to reporters, who were barred from entering the hospital compound during the visit of Sen. Ramon “Bong” Revilla Jr. …

  • N. Korea fires missiles in anger at South-US military drills
    N. Korea fires missiles in anger at South-US military drills

    North Korea fired two short-range ballistic missiles into the sea and vowed "merciless" retaliation Monday as the US and South Korea kicked off joint military drills denounced by Pyongyang as recklessly confrontational. The annual exercises always trigger a surge in military tensions and warlike rhetoric on the divided peninsula, and analysts saw the North's missile tests as a prelude to a concerted campaign of sabre-rattling. "If there is a particularly sharp escalation, we could see the …

  • Australian drug smugglers being taken to Indonesian island for execution - media
    Australian drug smugglers being taken to Indonesian island for execution - media

    By Jane Wardell and Beawiharta SYDNEY/DENPASAR, Indonesia (Reuters) - Two convicted Australian drug smugglers were removed from a prison in Bali on Wednesday to be taken to an Indonesian island where they will be shot by firing squad, Australian media reported. The planned executions of Myuran Sukumaran, 33, and Andrew Chan, 31, have ratcheted up diplomatic tensions amid repeated pleas of mercy for the pair from Australia and thrown a spotlight on Indonesia's increasing use of the death …

  • No need for Revilla to visit son – prosecutors
    No need for Revilla to visit son – prosecutors

    Instead of filing an opposition, ombudsman prosecutors filed a manifestation yesterday expressing belief that there is no urgent need for Sen. Ramon “Bong” Revilla Jr. to visit his son at the Asian Hospital and Medical Center. “Based on the clinical abstract issued by the Asian Hospital on patient (Cavite) Vice-governor (Jolo) Revilla, which was submitted by accused Revilla in support of his Urgent Motion, Vice-governor Revilla is in stable condition and has stable vital signs, as of March 1, …

  • Another source of SAF execution video identified
    Another source of SAF execution video identified

    The National Bureau of Investigation (NBI) is still tracing the source of the video showing one of the wounded police commandos being finished off by Muslim rebels during the encounter in Mamasapano, Maguindanao last Jan. 25. A source from the Department of Justice (DOJ) said they have identified two persons who first uploaded the video that went viral over social networking sites. The supposed source of the video was elusive and claimed that somebody just placed it on an external drive. The …

  • Couple married 67 years holds hands in final hours together
    Couple married 67 years holds hands in final hours together

    FRESNO, Calif. (AP) — After spending 67 years together as devoted husband and wife, there was no question how Floyd and Violet Hartwig would end their lives — together. …

  • How Islamic is Islamic State group? Not very, experts say
    How Islamic is Islamic State group? Not very, experts say

    CAIRO (AP) — Three British schoolgirls believed to have gone to Syria to become "jihadi" brides. Three young men charged in New York with plotting to join the Islamic State group and carry out attacks on American soil. A masked, knife-wielding militant from London who is the face of terror in videos showing Western hostages beheaded. …

POLL

Should Aquino be held accountable over the Mamasapano operations?

Loading...
Poll Choice Options