MAY 1, 2019 — Debt watcher Standard & Poor’s (S&P) upgraded the sovereign credit rating of the Philippines to ‘BBB+’ on the back of strong economic growth.
The rating is the highest investment grade rating of the Philippines.
In a statement, S&P Global Ratings cited the country’s above-average economic growth, health external position, and sustainable public finance.
“The stable outlook reflects our view that the Philippine economy will maintain its strong momentum over the medium term, in combination with contained fiscal deficits and stable public indebtedness,” said the debt watchdog.
With much lower borrowing costs, the National Economic and Development Authority (NEDA) said the upgrade will help sustain the momentum of economic expansion.
The Department of Finance noted that the upgrade will help both the private and public sector.
“Ang result niyan ay magiging mas mura ang pag-utang ng ating gobyerno or ng kahit sinumang Filipino corporation na kailangan ng additional resources,” said Finance Assistant Secretary Antonio Lambino.
In a statement, Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said the central bank will continue to extend support to the Philippines’ economic development goals.
“Armed with a new charter that strengthens its ability to carry out its primary mandate of price stability and supervise the banking sector, the BSP will continue to lend support to the economic development goals of the country,” said Diokno.