Philippines gets third investment rating
The Philippines on May 7 received its third investment grade credit rating, this time from the Japan Credit Rating Agency Ltd, or JCRA.
The Japanese agency said it raised its credit rating for the Philippines by a notch from BBB- to BBB, with stable outlook.
Fitch Ratings gave the Philippines its first investment grade rating in late March, while Standard & Poor’s followed suit in early May.
JCRA is of the opinion the upgrade reflects improvements in the Philippines’ political stability and fiscal position, as well as robust economic growth.
The Japanese analysts also noted the Philippines’ resilience to external shocks rendered by the accumulation of foreign exchange reserves. It said the Philippines’ current account will remain in surplus, on the back of remittances from overseas Filipino workers and revenues from business process outsourcing companies.
“Its fiscal position will continue to improve moderately as the Aquino government is committed to hold the fiscal deficit – GDP ratio within its 2 per cent target from 2013 onwards,” it said.
“The pattern in which Overseas Filipino Workers remittances support the balance of payments as well as private consumption is likely to continue in 2013.”
However, the rating agency said the Philippines should upgrade its infrastructure and improve the business environment to ensure sustainable economic growth.
“As the uncertainty persists over the prospect of the world economy, especially the European economy, JCRA will closely monitor its future developments and their possible impact on the Philippine economy,” it said.
The Philippines on May 7 received its third investment grade credit rating, this time from the Japan Credit Rating Agency Ltd, or JCRA. The Japanese agency said it raised its credit rating for the Philippines by a notch from BBB- to BBB, with stable outlook. Fitch Ratings gave the Philippines its first investment grade rating in late March, while Standard & Poor's followed suit in early May. JCRA is of the opinion the upgrade reflects improvements in the Philippines' political stability and fiscal position, as well as robust economic growth. The Japanese analysts also noted the Philippines' resilience to external shocks...
The Philippines on May 7 received its third investment grade credit rating, this time from the Japan Credit Rating Agency Ltd, or JCRA.
The Japanese agency said it raised its credit rating for the Philippines by a notch from BBB- to BBB, with stable outlook.
Fitch Ratings gave the Philippines its first investment grade rating in late March, while Standard & Poor’s followed suit in early May.
JCRA is of the opinion the upgrade reflects improvements in the Philippines’ political stability and fiscal position, as well as robust economic growth.
The Japanese analysts also noted the Philippines’ resilience to external shocks rendered by the accumulation of foreign exchange reserves. It said the Philippines’ current account will remain in surplus, on the back of remittances from overseas Filipino workers and revenues from business process outsourcing companies.
“Its fiscal position will continue to improve moderately as the Aquino government is committed to hold the fiscal deficit – GDP ratio within its 2 per cent target from 2013 onwards,” it said.
“The pattern in which Overseas Filipino Workers remittances support the balance of payments as well as private consumption is likely to continue in 2013.”
However, the rating agency said the Philippines should upgrade its infrastructure and improve the business environment to ensure sustainable economic growth.
“As the uncertainty persists over the prospect of the world economy, especially the European economy, JCRA will closely monitor its future developments and their possible impact on the Philippine economy,” it said.
