PH bags second investment grade

In another vote of confidence, the Philippines bagged its second investment grade rating on Thursday from global debt watcher Standard and Poor's (S&P).

S&P gave the Philippines a stable outlook and raised its credit rating to BBB- from the previous BB+.

The upgrade came only more than a month after Fitch Ratings gave the country its first investment grade.

An investment grade means the Philippines can borrow funds at a lower cost, allowing the government to save.

Related story: A first in history: PH gets investment grade

"The upgrade on the Philippines reflects a strengthening external profile, moderating inflation and the government's reliance on foreign currency debt," S&P credit analyst Agost Benard said in a statement.

The Philippine economy exceeded expectations last year by accelerating growth to 6.6 percent from 3.9 percent in 2011.

"We expect the country to move into near-balanced external position because of persistent account surpluses, in which large net transfers from Filipinos working abroad more than offset ongoing trade deficits," Benard added.

Also read: PH stock market named one of world's 'hottest'

Malacanang welcomed the upgrade, which it said is the "latest institutional affirmation of the Aquino administration’s good governance initiatives."

"It is further indicative of sustained confidence in the Philippine economy:  of our collective resilience, optimism, and growing potential, amidst global economic uncertainty," presidential spokesperson Edwin Lacierda said.

Finance Secretary Cesar Purisima for his part said the ratings upgrade is "an affirmation of what the markets already recognize—that our economy's underlying soundness is on par with countries rated investment grade or higher."

Related story: More Pinoys remain poor, says NSCB

"For now, we must redouble our efforts to remove the remaining constraints to our growth if we are to reach even greater heights," Purisima said.

This, as he vowed that the government will focus on infrastructure development, ramping up social investments and further opening up the economy.

With the S&P upgrade, only one major debt watcher, Moody's Investors Service, has yet to give the country an investment grade, placing it a notch lower with a Ba1 rating.

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.

  • The other side of Palawan Ellen Tordesillas, Contributor - The Inbox
    The other side of Palawan

    By Ellen T. Tordesillas Mention Palawan and what comes to mind are  Underground River and El Nido in the northern side of this richly-blessed province from its capital, Puerto Princesa. Three  weeks ago, we went to the southern side- in … Continue reading → …

  • What can void a new car warranty? James Deakin - Wheel Power
    What can void a new car warranty?

    "I was denied warranty once for changing my horn!" One very annoyed reader wrote. "I was told that placing a backup camera will void my warranty" said another. The others are best left in my private inbox as Yahoo! have a swear jar in the office that I do not feel like donating this week's pay to. Continue reading → …

  • Docu exposes destruction of PH marine resources VERA Files - The Inbox
    Docu exposes destruction of PH marine resources

    By Kiersnerr Gerwin Tacadena, VERA Files "Gutom (hunger)," Sen. Loren Legarda said is what’s in store for the Filipino people if destruction of the country's marine resources is not stopped. Legarda, chair of the Senate committee on Environment and Natural … Continue reading → …

POLL
Loading...
Poll Choice Options