No. 05.07.13 No. 2109 10.30.2008
Gov’t welcomes 2nd investment grade rating The government welcomed Standard & Poor’s (S&P) upgrade of the Philippines to investment grade rating, saying it affirms President Benigno S. Aquino III’s good governance initiatives. The country’s credit rating went up one notch to BBB(lower medium grade) from BB+ (non-investment grade speculative), with a stable outlook. Notably, the Philippines overtook Indonesia to win an investment grade from S&P. Presidential Spokesman Edwin Lacierda said the second credit upgrade obtained by the Philippines is indicative of the sustained confidence in the country’s economy.
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“The upgrade on the Philippines reflects a strengthening external profile, moderating inflation and the government’s declining reliance on foreign currency debt,” S&P Credit Analyst Agost Benard said.
Department of Trade and Industry (DTI) Secretary Gregory L. Domingo said the upgrade “is a tremendous stamp of approval by ratings agencies on the good governance agenda of PNoy that will further support the continued rush of investment.” “We are very pleased that S&P, along with Fitch, has also now affirmed the Philippines’ strong economic and fiscal gains,” Department of Finance (DOF) Secretary Cesar V. Purisima said. He added that the investment grade rating is another resounding vote of confidence on the Philippines. Purisima said that “good governance - tuwid na daan is bringing structurally sustainable growth for the Philippines” and that “the Philippine government will continue to focus on infrastructure development, on creating a larger fiscal space to support social investments, and on further opening up the economy.” Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco Jr. said that S&P upgrade undoubtedly cements the Philippines’ status as an economy with one of the brightest prospects globally. “With our investment grade rating, we are more confident that these inflows, particularly of more FDIs, will swing towards increasing the country’s productive capacity, thereby generating more employment and higher incomes,” he said. The Aquino administration has made it its goal to reach investment grade status this year in a bid to lure more foreign investments, lessen debt interest payments and free up more resources for public projects.