Quantcast
Latest Stories

Fitch upgrades Philippines’ credit rating

Firm cites improving gov’t fiscal position

By

ADDED BOOST Eight days after Moodys upgraded the country’s credit rating to two notches below investment grade, the Philippines got another upgrade to just a notch below investment grade from Fitch Ratings.

The Philippines enjoyed another boost to its international image as Fitch Ratings upgraded the country’s credit rating to just a notch below investment grade.

With the decision, the Philippines’ credit rating on its long-term foreign obligations now stands at BB+, an improvement from the previous BB.

“The upgrade reflects progress on fiscal consolidation against a track record of macro stability, broadly favorable economic prospects and strengthening external finances,” Andrew Colquhoun, head of Fitch’s Asia-Pacific sovereigns, said in a statement.

According to Fitch’s projections, the Philippine government’s budget deficit for 2011 would stand at 3 percent of the country’s gross domestic product, an improvement from the 3.7 percent registered last year.

Fitch said the country was on track in meeting its medium-term fiscal development goals, citing recent improvements in revenue collection by the government. Revenue collection grew 18 percent in the first four months from the same period a year ago, it noted.

The credit-rating firm said that should revenue collection growth continue, the county was well poised to reduce its overall debts over the medium term.

The country’s debts stood at 57 percent of its GDP in end-2009, but Fitch said there was a chance the figure could decline to 50 percent by end-2013.

The upgrade by Fitch of the country’s credit rating came after Moodys raised the country’s credit rating to two notches below investment grade earlier this month.

The favorable credit actions came following pronouncements by the country’s finance and monetary officials that upgrades were overdue as they cited better economic figures for the country.

Finance Secretary Cesar V. Purisima said the government would strive to attain its goal of investment grade-credit rating “at the soonest time possible.”

“The Fitch upgrade is the fourth positive ratings action in the 11 months of the Aquino administration and is unprecedented in Philippine history,” Purisima said.

The finance chief said Fitch’s move was another “objective vote of confidence” that the Philippines was headed in the right direction.

“There will be no letup in our campaign to prosecute, convict and jail tax evaders and smugglers,” Purisima added. “We will work doubly hard to ensure that the investment-grade rating comes sooner rather than later.”

“The Philippines’ strengthening credit profile continues to be internationally recognized by both markets and the rating agencies. Today’s upgrade from Fitch Ratings brings the Philippines one notch closer to investment grade status and is a clear acknowledgement of the country’s improving macroeconomic fundamentals,” Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. said.


Follow Us


Follow us on Facebook Follow on Twitter Follow on Twitter


Recent Stories:

Complete stories on our Digital Edition newsstand for tablets, netbooks and mobile phones; 14-issue free trial. About to step out? Get breaking alerts on your mobile.phone. Text ON INQ BREAKING to 4467, for Globe, Smart and Sun subscribers in the Philippines.

Tags: Credit rating , Fitch , Philippines , Ratings



Copyright © 2014, .
To subscribe to the Philippine Daily Inquirer newspaper in the Philippines, call +63 2 896-6000 for Metro Manila and Metro Cebu or email your subscription request here.
Factual errors? Contact the Philippine Daily Inquirer's day desk. Believe this article violates journalistic ethics? Contact the Inquirer's Reader's Advocate. Or write The Readers' Advocate:
c/o Philippine Daily Inquirer Chino Roces Avenue corner Yague and Mascardo Streets, Makati City, Metro Manila, Philippines Or fax nos. +63 2 8974793 to 94
Advertisement
Advertisement

News

  • 4.9 quake jolts Batanes on Maundy Thursday
  • Presidents, celebrities mourn writer Garcia Marquez
  • MH370 search to be most costly ever at $100 million — analysts
  • Iraqi guilty of beating wife to death in US
  • Avalanche sweeps Everest; 6 killed, 9 missing
  • Sports

  • Heat seek Three-peat but Spurs, Pacers top seeds
  • Can Spurs get back at Heat? Can they survive West?
  • Hopkins, 49, seeks win for the ageless
  • LeBron still No. 1 with NBA’s most popular jersey
  • Pacquiao back in PH, heads home to wife, kids
  • Lifestyle

  • Gabriel Garcia Marquez, Nobel laureate, dies at 87
  • Ford Mustang turns 50 atop Empire State Building
  • Pro visual artists, lensmen to judge Pagcor’s photo contest
  • ‘Labahita a la bacalao’
  • This is not just a farm
  • Entertainment

  • ‘X-men’ filmmaker slams ‘fabricated’ sex attack claims
  • Singer Chris Brown’s bodyguard on trial in DC
  • Whoopi Goldberg debuts as marijuana columnist
  • ‘X-men’ director accused of sex assault on teen boy
  • Cannes film festival launches race for 2014 Palme d’Or
  • Business

  • Italy sells luxury state cars on eBay
  • Asian shares mostly up in quiet trade
  • Dollar up in Asia on US jobs data, Ukraine deal
  • Barbie doll has a problem
  • Oil prices mixed ahead of long Easter weekend
  • Technology

  • Nokia recalls 30,000 chargers for Lumia 2520 tablet
  • Facebook rolls out ‘nearby friends’ feature
  • Netizens seethe over Aquino’s ‘sacrifice’ message
  • Filipinos #PrayForSouthKorea
  • Taylor Swift tries video blogging, crashes into fan’s bridal shower
  • Opinion

  • Editorial cartoon, April 17, 2014
  • A humbler Church
  • Deepest darkness
  • ‘Agnihotra’ for Earth’s health
  • It’s the Holy Week, time to think of others
  • Global Nation

  • Last call for nominations to ’14 Presidential Awards
  • San Francisco business coalition slams proposed tax on sugary drinks
  • A ‘time-travel’ production of ‘Les Miserable’ at Stanford
  • Filipina Maryknoll sister honored for years of service
  • Malaysia quarantines 64 villagers over MERS virus
  • Marketplace