PH gains another credit upgrade

The Philippines has secured yet another credit rating upgrade, this time from South Korea’s oldest debt watcher.

Development officials said the upgrade was another vote of confidence in the country and the reforms it put in place, which allowed the domestic economy to boom.

National Information & Credit Evaluation (NICE) Ratings Inc. raised the country’s long-term, foreign-currency rating by a notch from junk to the minimum investment grade of BBB-.

It also assigned a “positive” outlook, which indicated the likelihood of another upgrade within the short term.

“It reflects the improved growth potential backed by institutional reforms and greater investment in infrastructure,” NICE Ratings said in its latest report on the Philippines.

With its decision, the South Korean institution joins major international ratings firms Fitch Ratings, Japan Credit Rating Agency, Moody’s Investors Service, R&I, and Standard & Poor’s in saying the Philippines is investment worthy.

Bangko Sentral ng Pilipinas Governor Amando Tetangco Jr. and Finance Secretary Cesar Purisima said that, because of the NICE Ratings upgrade, it would now be difficult for the international community to ignore the country’s economic strengths.

NICE Ratings believes that the Philippines can sustain robust growth, citing government efforts to boost the manufacturing sector and invest heavily in infrastructure.

Manufacturing grew by an average of 7.9 percent from 2010 to 2013. Also, the government plans to ramp up public spending for infrastructure, targeting an equivalent of 4 percent of gross domestic product in 2015, from this year’s 3 percent.

The economy grew by 6 percent in the first semester.