by: Sarah Joson
Wednesday, March 18, 2015 |
Fitch Ratings recently released a statement, saying it will be upholding the Philippines’ long-term foreign currency issuer default rating at “BBB-“. The outlook will be kept at “stable”, which is an indication of the country’s credit score for the coming months.
Fitch first raised the Philippines’ credit score to investment grade in 2013, and this year would mark the second consecutive year for this rating. Other credit rating agencies that have upgraded the country’s credit score by two notches are Moody's and Standard & Poor's.
However, Finance Secretary Cesar V. Purisima pointed out that Fitch is devaluing its rating for the Philippines as it is continuing to improve and implement good governance. He also noted that the country has proven its sustainability, stability, and resiliency in the past four years - proving that it is growing immensely. Moving forward, he is expecting to see more credit rating upgrades as the country continues to post better fundamentals, along with strong fiscal performance and sustained governance reforms.
Bangko Sentral ng Pilipinas (BSP) Governor Amando Tetangco Jr. noted that the country’s consistent investment grade from Fitch is a great indication of the Philippines’ strong fundamentals, stable banking sector, healthy external payments position, and within-target inflation.
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