S&P affirms Philippines' BBB+ rating, stable outlook

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MANILA - S&P Global Ratings has affirmed the Philippines’ BBB+ investment grade credit rating saying the country’s economic recovery for post-pandemic has remained robust.S&P also kept its stable outlook on the country, saying it expects economic recovery to be sustained and fiscal deficits to decline over the next two years.“The government is continuing its fiscal consolidation, with a lower deficit and stabilizing debt burden. The country's external position remains a rating strength, although current account deficits in recent years have decreased net external assets,” S&P said. <ul class='op-related-articles'>	<li><a href='https://news.abs-cbn.com/business/05/22/23/fitch-affirms-bbb-rating-for-ph-revises-outlook-to-stable'>Fitch affirms BBB rating for PH, revises outlook to stable</a></li>	<li><a href='https://news.abs-cbn.com/business/08/07/23/ph-eyes-a-rating-from-debt-watchers-before-marcos-term-ends'>PH eyes 'A' rating from debt watchers before Marcos term ends: Diokno</a></li></ul>S&P said it may lower the ratings if annual changes in net general government debt that are consistently higher than 4 percent of GDP and the general government net debt stock exceeding 60 percent of GDP; or interest payments exceeding 15 percent of revenue on a sustained basis.On the other hand, ratings may be raised if the economy recovers much faster than expected, and the government achieves more rapid fiscal consolidation.The debt watcher said it expects slower growth amid elevated inflation and a sluggish global economy.The Philippines’ GDP will grow 5.4 percent this year, and 5.9 percent next year, according to S&P–numbers which are below the government’s targets of at least 6 percent for 2023 and at least 6.5 percent for 2024. S&P however added that economic expansion will still be faster than its peers. “Nonetheless, economic growth in the Philippines should be well above the average for peers at a similar level of development, on a 10-year weighted average per capita basis,” S&P said. The Department of Finance meanwhile welcomed the steady rating. “In a sea of downgrades, the international rating agencies continue to affirm their confidence in the Philippine economy’s macroeconomic fundamentals,” Finance Secretary Benjamin Diokno said in a statement. Diokno has said that the Philippines is aiming to get the highest ‘A’ investment grade rating before the end of President Ferdinand Marcos Jr.’s term. Having an “A” rating gives the country access to loans with better interest rates. It can also make the Philippines more attractive to foreign investors.<ul class='op-related-articles'>	<li><a href='https://news.abs-cbn.com/business/10/31/23/philippine-debt-dips-in-september-to-p1427-trillion'>Philippine debt dips by P81 billion in September to P14.27 trillion</a></li></ul>

S&P said it may lower the ratings if annual changes in net general government debt that are consistently higher than 4 percent of GDP and the general government net debt stock exceeding 60 percent of GDP; or interest payments exceeding 15 percent of revenue on a sustained basis.On the other hand, ratings may be raised if the economy recovers much faster than expected, and the government achieves more rapid fiscal consolidation.The debt watcher said it expects slower growth amid elevated inflation and a sluggish global economy.The Philippines’ GDP will grow 5.4 percent this year, and 5.9 percent next year, according to S&P–numbers which are below the government’s targets of at least 6 percent for 2023 and at least 6.5 percent for 2024. S&P however added that economic expansion will still be faster than its peers. “Nonetheless, economic growth in the Philippines should be well above the average for peers at a similar level of development, on a 10-year weighted average per capita basis,” S&P said. The Department of Finance meanwhile welcomed the steady rating. “In a sea of downgrades, the international rating agencies continue to affirm their confidence in the Philippine economy’s macroeconomic fundamentals,” Finance Secretary Benjamin Diokno said in a statement. Diokno has said that the Philippines is aiming to get the highest ‘A’ investment grade rating before the end of President Ferdinand Marcos Jr.’s term. Having an “A” rating gives the country access to loans with better interest rates. It can also make the Philippines more attractive to foreign investors.<ul class='op-related-articles'>	<li><a href='https://news.abs-cbn.com/business/10/31/23/philippine-debt-dips-in-september-to-p1427-trillion'>Philippine debt dips by P81 billion in September to P14.27 trillion</a></li></ul>

“The government is continuing its fiscal consolidation, with a lower deficit and stabilizing debt burden. The country's external position remains a rating strength, although current account deficits in recent years have decreased net external assets,” S&P said. <ul class='op-related-articles'>	<li><a href='https://news.abs-cbn.com/business/05/22/23/fitch-affirms-bbb-rating-for-ph-revises-outlook-to-stable'>Fitch affirms BBB rating for PH, revises outlook to stable</a></li>	<li><a href='https://news.abs-cbn.com/business/08/07/23/ph-eyes-a-rating-from-debt-watchers-before-marcos-term-ends'>PH eyes 'A' rating from debt watchers before Marcos term ends: Diokno</a></li></ul>

MANILA - S&P Global Ratings has affirmed the Philippines’ BBB+ investment grade credit rating saying the country’s economic recovery for post-pandemic has remained robust.S&P also kept its stable outlook on the country, saying it expects economic recovery to be sustained and fiscal deficits to decline over the next two years.

S&P Global Ratings has affirmed the Philippines’ BBB+ investment grade credit rating saying the country’s economic recovery for post-pandemic has remained robust.

S&P affirms Philippines' BBB+ rating, stable outlook | ABS-CBN News

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S&P affirms Philippines' BBB+ rating, stable outlook

S&P affirms Philippines' BBB+ rating, stable outlook