by: Sarah Joson
Tuesday, June 25, 2013 | Outsourcing News |
With the recent market turbulence, debt watchers are certain that the economy of the Philippines will withstand crisis and maintain its credit rating as it possesses strong credentials.
According to financial services companies Standard & Poor’s (S&P) and Fitch Ratings, the Philippines can hold out through the unstable global economic environment.
Agost Bernard, a credit analyst at S&P, confirmed that the credit ratings of the country will not be affected.
Meanwhile, Andrew Colquhoun, Head of Fitch’s Asia-Pacific Sovereigns, said the country can endure critical issues such as the plans of the US to retract grants and provisions.
However, it was observed that investments that helped Asia to grow are now seen in the US and are being utilized as tools to improve interest rates in the country.
Moreover, Colquhoun said the country is able to pay off its external obligations with the massive current account surplus that grew since 2003. For this year’s first quarter, the surplus reached $3.4 billion. The Philippines’ revenues from other segments such as remittances, exports, and business process outsourcing (BPO) were able to underwrite its total balance of payments (BOP) as of May, which reached a surplus of $1.884 billion.
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