by: Sarah Joson
Monday, April 27, 2015 |
The Philippines retains its rating of BBB with a “stable” outlook given by global debt watcher Standard & Poor’s last May. It is one spot higher than the minimum investment grade, and with the country’s rating, the agency expects the Philippine economy to keep its bullish stride in terms of growth.
According to S&P, the country’s rising foreign exchange reserves and low external debt burden are a clear representation of the agency’s ratings for the country. Other key factors cited by the agency include the country’s optimistic labor market, improved financial environment, strong external payments position, stable financial system, and robust domestic consumption.
The agency also projects that the country will be posting an average of 4.7 for surpluses every year up until 2019.
As for the Philippines’ budget deficit, one of the crucial factors for being creditworthy, S&P sees it will post a modest one percent gross domestic product from this year up to 2019.
The Philippines is now eyeing a credit rating within the “A” category for the medium term. The lowest rating in the A category is A-, and the current BBB rating of the Philippines is only two places below it.
Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said the country’s fundamentals have been improving and with its bullish pace, additional credit rating upgrades over the medium term should be attainable.
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