Filipino business chief executive officers (CEOs) have concluded in their United States-wide investment road show an appeal to Americans to take advantage of the “resurging” Philippine economy, the Department of Foreign Affairs (DFA) said on Friday.
Malacañang credited President Benigno Aquino III’s “straight path” for Standard & Poor’s upgrade of the country’s sovereign borrower standing to investment grade.
Fitch Ratings said the Philippines and countries in the Asia-Pacific were likely to remain the most resilient to global economic weakness among the regions in the world until 2014 given the strong domestic demand in these economies.
After an impressive weekly market advance of 328.76 points or 5.04 percent (buoyed by the upgrade given by Fitch Ratings on the country) when it closed for the Holy Week, the market retreated to negative territory last week, ending with a net loss of 120.33 points or 1.76 percent at 6,727.14.
Competition between the country’s top telecommunications firms is expected to stay intense over the next few years as players fight to maintain and grow their market shares in a maturing industry, debt watcher Fitch Ratings said.
Backed by a favorable sentiment on the Philippine economy, the peso sustained its uptrend, making itself the third fastest-rising Asian currency in the first quarter.
The peso fell on the first trading day after the Lenten break as the euphoria over the Philippines’ attainment of an investment grade eased.
Interior Secretary Mar Roxas and Sen. Loren Legarda on Saturday attributed the decision of Fitch Ratings to award the country with its first-ever investment grade rating of BBB- from BB+ on the reform-oriented and transparent governance of President Benigno Aquino III.
The top three major credit rating agencies—Moody’s Investors Service, Standard & Poor’s and Fitch Ratings—assess the ability of a country to manage its debts.
“It’s an early Easter for the market,” said a fund manager after Fitch Ratings raised the Philippine credit rating to investment grade on Wednesday, a move expected to boost investments and lift the country’s long-term growth potential.
International credit watchdog Fitch Ratings has cited the much-improved debt profile of the Philippines and public-sector reforms that were helping boost its credit-worthiness.
Fitch Ratings said the Philippines might be at an early stage of a credit boom, citing the enormous liquidity enjoyed by the banking sector that has given it capability to maintain over the medium term the robust pace of lending growth seen recently.
