The peso closed stronger on Thursday after international credit-rating firm Standard & Poor’s raised the Philippines’ credit rating by a notch from junk status to investment grade.
The peso strengthened back to the 40-to-a-dollar territory on Wednesday as the euphoria over the upgrade in the Philippines’ credit rating to investments status superseded concerns over the unfavorable situation in the euro zone.
The local stocks index gained on Tuesday on the back of month-end window-dressing, a play on selective index stocks and a fresh sovereign credit rating upgrade for the Philippines.
Malacañang was ecstatic Thursday over Standard and Poors’ credit rating upgrade of the Philippines to a notch below investment grade.
Moody’s Investors Services has expressed confidence that the Philippines would manage to further trim its debt burden this year and over the medium term, hinting again that it was poised to soon upgrade the country’s credit-rating.
The Philippines stands a good chance of getting a credit rating upgrade in the short term from Standard & Poor’s, which expects the country’s debt profile to further improve as the economy grows and revenue collection rises.
The peso is expected to weaken in 2012 although this may be tempered by “a likely credit rating upgrade,” according to First Metro Investment Corp. and the University of Asia and the Pacific. FMIC and UA&P said in a joint research paper that the local currency’s trading range could average between 43 and 45 to [...]
Standard & Poor’s on Friday raised the outlook on the Philippines’ sovereign debt from “stable” to “positive,” thus boosting the country’s chances of getting a credit rating upgrade next year.
