MANILA, Philippines — 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 local currency closed at its intraday high of 41.05 against the US dollar, up by 10.5 centavos from the previous day’s finish of 41.155:$1.
Intraday low settled at 41.245:$1. Volume of trade jumped to $1.107 billion from $604.4 million previously.
In a statement, S&P said it increased the country’s rating from BB+ to BBB-, the minimum investment grade, on account of the country’s improving macroeconomic fundamentals.
“The upgrade on the Philippines reflects a strengthening external profile, moderating inflation, and the government’s declining reliance on foreign currency debt,” S&P credit analyst Agost Benard said in the statement.
The upgrade in the country’s credit rating came after S&P raised days ago its growth forecast for the Philippines for this year from 5.9 to 6.5 percent.
Traders said the upgrade in the country’s credit rating has made more foreign portfolio investors more interested in the Philippines.