MANILA - (UPDATED 7:21 p.m.) Standard and Poor's Rating Services (S&) has upgraded the Philippines' credit rating anew to two notches above junk status, as the debt watcher expects the country to sustain its fiscal gains, supported by a strong external payments position.
In a statement, S&P said it raised the country's long-term sovereign rating to 'BBB' from 'BBB-', and its short-term rating to 'A-2' from 'A-3', firming up the Philippines' status as an investment grade country.
This means the country can borrow cheaply from abroad and would become more attractive to investors that place their bets only on above-junk markets. S&P assigned a 'stable' outlook, thus the new rating will hold for at least a year.
S&P's action comes more than a year after it first upgraded the Philippines above junk status.
“We raised the ratings because we now believe the ongoing reforms to address shortcomings in structural, administrative, institutional, and governance areas will endure beyond the current administration. In turn, we believe the resulting gains in government revenue generation, spending efficiency, and the improvements in public debt profile and investment environment will at least be preserved in the medium term under the next administration,” said S&P credit analyst Agost Benard.
“This is based on our assessment that even though a change of administration after the presidential elections in 2016 represents some uncertainty for reforms, the risks have shifted toward maintaining the impetus and direction of the process, away from a potential reversal or abandonment of advances achieved to date,” Benard said.
http://www.interaksyon.com/business/...it-rating-anew
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