DOF expects credit ratings upgrade for Philippines


The Philippines should expect an upgrade from credit ratings firms in the near future, given the country’s improved economic prospects under the Aquino administration, the government’s chief economic manager yesterday said.

“The Philippines is the most underrated country in the world,” he told a forum organized by the Foreign Correspondents Association of the Philippines, referring the the country’s credit standing with global debt watchers Standard & Poor’s, Moody’s Investors Service and Fitch Ratings, all of which rank the country’s debt notes several notches below investment grade.

Purisima—who is also the de facto head of the Aquino administration’s economic team—expressed confidence that the credit watchers “would catch up with their ratings sooner rather than later,” adding that the country’s rating is, at present, “four levels below where it should be.”

In particular, the finance chief pointed to the country’s improving fiscal situation, its well-managed economy and the good governance drive of the administration as being the main drivers for the country’s expected upgrade.

Sovereign debt ratings determine how much a country—both its government and private corporations—pays to borrow from overseas lenders. The Philippines relies heavily on the offshore debt market to cover its chronic budget deficits, and is the Asia-Pacific’s largest sovereign debt issuer after Japan.

At present, the Philippines is rated by all major debt watchers at two notches below investment grade. The highest level achieved by the country is a notch below investment grade during the Ramos administration.

Get Inquirer updates while on the go, add us on these apps:

Inquirer Viber

Disclaimer: The comments uploaded on this site do not necessarily represent or reflect the views of management and owner of We reserve the right to exclude comments that we deem to be inconsistent with our editorial standards.

  • Pauline

    Well, marami pa ring factors ang dapat iconsider para ma-upgrade yung credit rating ng Pilipinas”
    1. Hello? Yung mga npa na nagkalat dyan hindi pa tumitigil kahit wala na silang pinaglalaban dahil bumagsak na yung komunismo noong 1991 sa Russia mismo!
    2. Hello? Yung mga abu sayyaf nagkalat pa sa basilan. ang daming magagandang beaches sa sulu and basilan kaya lang dahil sa mga lecheng taong extremist na to hindi nabibigyan ng chance magtayo ng resorts dun
    3. Hello? Ang daming infrastructure deficiencies sa bansa. Ni wala nga tayong matinong railway system that will connect the country from north to south, thus slowing of trade and people’s mobility
    4. Hello? Wag ka na lumayo. Sa airport pa lang bagsak na ang grado ng Pilipinas. Pumunta ka ng Naia parang banyo lang ng Dubai Airport.
    5. Hello? ang daming squatter na nakakasira sa view ng mga tourists sa bansa
    6. Hello? si corona na kampon ni gloria hindi pa napapatalsik eh paano pa yung ibang corrupt na politiko dyan na buaway kung humingi ng suhol sa mga negosyante
    7. Hello? pumunta ka sa mga public school at makikita mo yung sardinas na mga students nagsisiksikan 
    8. Hello? walang disiplina ang mga tao. tapon dyan tapon doon.
    9. Hello? ang daming regulations sa Pilipinas na nakakahinder sa investments
    10. Hello? araw araw may brown out sa mindanao! paano ka mag-iinvest sa mindanao kung bawat oras nawawalan ng kuryente! lechee!

    • JJF724

      Nice observation, Pauline…  hope you run for a position in government… we need people like you

  • yesyesyo

    May I point out a grammatical error, in the last sentence of the first paragraph: “…several notches below investment grade.”

    The fact is, it is just one or two notches below. the writer should have used the exact “one” or “two” or “a few” instead of “several” which gives a very different picture altogether.

  • kulittwit

    It’s inevitable, the Philippines will rise to investment grade status under the honest govt of PNoy. God bless the Philippines.

  • Dalisay

    Hey Dax, get your facts straight. Fitch upgraded the Philippines to one notch below investment grade last June. I guess you’re too busy looking for dirt on Pnoy to notice the good things happening to the country, eh? Or maybe you don’t regard Fitch as a major credit rating agency?

    • ghzoc

      Its good to know that there are still people who are positive thinkers and cares about sensible news.

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


editors' picks



latest videos