Korean debt watcher National Information and Credit Evaluation Ratings, Inc. (NICE) gives the Philippines an investment grade rating which pushed the country’s long-term, foreign currency score to a BBB-. The firm also has a positive outlook for the country, which could result to further upgrades.
In a statement, NICE said the upgrade is a result of the country’s steady performance in the financial market and external sector, improved growth potential and fiscal profile, and a taming political environment.
The firm also said they based the upgrade on the impressive economic growth of the country last year at 7.2 percent. But with projections pointing to a slower growth of six percent this year, NICE noted that it will be normal due to the usual economic adjustments as the momentum stabilizes.
The financial institution also took notice of the country’s stable financial markets amidst external events like global sell-offs that began in May of last year. They also said the Philippines’ domestic markets remain resilient, backed by abundant liquidity levels and strong current accounts.
As for the oversaturated real estate market fuelled by the expansion of the construction industry and rising real estate prices, NICE predicts that it will normalize soon. They also stated that improvements in governance and infrastructure could further drive the credit rating upward.