US credit rating downgrade may affect PH economy—analyst
MANILA, Philippines – The first-ever US credit rating downgrade may affect Philippine economy, a financial analyst said over a 990AM interview Tuesday.
“Because of what happened, the global economy and trade could slow down, investors could be reduced,” Felomino Sta. Ana of Action for Economic Reform said.
He said we could also lose some opportunities and employment could be affected.
Sta. Ana said that it would be very hard to give a forecast of the economy because the uncertainty.
He said that the credit rating assessment was a country’s standing on how they would be able to pay debts. “A country with low credit rating means it has less capability to pay its debts.”
Over the weekend, Standard & Poor’s downgraded the US credit rating for the first time, causing world stocks to rack up more losses on Monday on rising worries about a double-dip global recession, deep-rooted jitters over the downgrade and festering concerns about Europe’s debt woes.
