by: Sarah Joson
Friday, April 22, 2016 |
With the Philippines’ bullish macroeconomic fundamentals, financial services company Standard & Poor’s has decided to keep the country’s credit rating of BBB, which is one spot higher than the minimum score in the investment-grade scale.
S&P said they based the ratings on the country’s strong external position. The main factors found are the rising foreign exchange reserves and low and declining external debt. Should there be no threats over the short term period, the agency’s “stable” outlook for the Philippines is expected to stay the same.
Moreover, S&P predicts that incomes will increase because of the country’s strong macroeconomic fundamentals.
Based on the agency’s projection, real capita income will grow by 4.4 percent this year, from 4.1 percent last year. Furthermore, it is expected to average by 4.6 percent in the next three years.
S&P is certain that despite the upcoming election and admission of a new government by the end of June, policies implemented over the past six years are deep-rooted and not likely to be changed.
S&P will continue to link the affirmation of ratings to the ability of the new government to uphold the fiscal, economic, and development policies as these rulings are said to have resulted to positive events in the country. These include its declining debt burden, strong external payments position, modest inflation, robust consumption, growing investments, and stable banking system.
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