Conscious Investing Today
  • Top News
  • Business Insider
  • Economic Indicators
  • Investing Ideas
  • Politics News
  • Stock Analysis
  • Editor’s Pick
No Result
View All Result
  • Top News
  • Business Insider
  • Economic Indicators
  • Investing Ideas
  • Politics News
  • Stock Analysis
  • Editor’s Pick
No Result
View All Result
Conscious Investing Today
No Result
View All Result
Home Politics News

Philippines’ BBB+ rating affirmed

by
April 23, 2021
in Politics News
0
Philippines’ BBB+ rating affirmed
0
SHARES
5
VIEWS
Share on FacebookShare on Twitter
ADVERTISEMENT
BW FILE PHOTO

Japan-based Rating and Investment Information, Inc. (R&I) has kept its BBB+ credit rating with a stable outlook for the Philippines, citing the country’s robust post-pandemic growth prospects.

In a statement on Friday, the debt watcher cited Philippine potential to bounce back from last year’s 9.6% drop in economic output as investments come in, and fiscal and monetary policies remain accommodative.

“The Philippines’ economy suffered a severe contraction due to the COVID-19 pandemic in 2020 but is expected to recover primarily through aggressive public investment, which had driven the economy in the past several years,” it said. “Fiscal and monetary policies will boost growth for some time.”

The rating was a “vote of confidence” in the country’s ability to bounce back from the COVID-19 crisis, central bank Governor Benjamin E. Diokno said in a separate statement.

“With the recent surge in COVID-19 cases, the tail end of the crisis is proving to be extra challenging,” he said. “Nevertheless, we do not see a permanent dent on our macroeconomic fundamentals, and we can head back to our growth path post-COVID.”

The rating company first upgraded its rating for the country in February 2020 from BBB. A BBB+ rating is a notch away from the minimum score A rating that the government is aiming for. A stable outlook means the rating is unlikely to be changed in the near term.

R&I said the government’s fiscal position was manageable amid higher spending and increased budget deficit at the height of a coronavirus pandemic.

The fiscal gap ballooned to 7.6% of gross domestic product (GDP) last year from 3.2% a year earlier, while its debt stock level was expected to rise to 57% this year from 54.5% last year and 39% in 2019.

“R&I does not view this as a major issue at this juncture, because of a comfortable funding condition backed by ample domestic liquidity and the prospect of peaking out of the debt ratio within one to two years,” it said.

“The overall balance of payments is positive and foreign reserves are greater than external debt. R&I therefore considers the risk associated with the external position to be limited,” it added.

ADVERTISEMENT

The Japanese rating agency also said crucial measures that seek to fast-track recovery that were enacted recently would help, including one that lowered the corporate income tax and another that would help banks offload their soured loans.

“Eyes are on whether the country will be able to enhance resource allocation efficiency and productivity in the medium to long term by capitalizing on these reforms,” it said.

It said other bills pending in Congress aiming to liberalize certain industries should be passed.

Mr. Diokno said the favorable long-term outlook on inflation, the country’s stable banking system and faster digital adoption should bolster confidence in the country’s medium- and long-term growth prospects.

R&I had taken notice that “although the global fight against the pandemic has proven to be a costly one, the country’s strong macroeconomic fundamentals ahead of the pandemic have enabled the government to accelerate spending on urgent and necessary programs to save lives and keep the economy afloat,” Finance Secretary Carlos G. Dominguez III said in the statement.

“With a manageable debt profile, a steady revenue stream brought about by tax reform, and the continued practice of fiscal prudence, the government is confident it will not run out of resources in waging the protracted battle against the COVID-19 crisis,” he added.

Other credit raters have affirmed their latest ratings for the Philippines as well amid the pandemic.

But Moody’s Investors Service last month said a coronavirus resurgence and renewed lockdowns in the capital region and nearby provinces were “credit negative” given their effects on economic recovery.

Moody’s affirmed its Baa2 credit rating with a stable outlook for the Philippines in July.

In January, Fitch Ratings also kept its BBB rating with a stable outlook for the country, while S&P Global Ratings maintained a BBB+ sovereign rating, with a stable outlook as well.

Related Posts

PHINMA Corp. to conduct annual stockholders’ meeting through remote communication on July 14
Politics News

PHINMA Corp. to conduct annual stockholders’ meeting through remote communication on July 14

June 25, 2022
ACE Malolos Doctors announces schedule of hybrid stockholders’ meeting on July 18
Politics News

ACE Malolos Doctors announces schedule of hybrid stockholders’ meeting on July 18

June 24, 2022
ING to exit PHL retail banking business by this year
Politics News

ING to exit PHL retail banking business by this year

June 24, 2022
Next Post
DTI to propose P10-B livelihood subsidy for micro businesses

DTI to propose P10-B livelihood subsidy for micro businesses

NatWest will refuse to serve business customers who accept Bitcoin and other cryptocurrencies

NatWest will refuse to serve business customers who accept Bitcoin and other cryptocurrencies

Spotify owner offers to buy Arsenal amid fan protests

Spotify owner offers to buy Arsenal amid fan protests

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us. Remember that you can opt-out any time, we hate spam too!

Categories

  • Economic Indicators
  • Editor's Pick
  • Investing Ideas
  • Politics News
  • Stock Analysis

Popular News

  • A Minute With: Family Reunion cast on relatable story lines

    A Minute With: Family Reunion cast on relatable story lines

    0 shares
    Share 0 Tweet 0
  • Twitter launches ‘Milk Tea Alliance’ emoji as movement grows

    0 shares
    Share 0 Tweet 0
  • Gas and car bills to soar under green revolution

    0 shares
    Share 0 Tweet 0
  • Level up your gaming experience with vivo Y20s [G]

    0 shares
    Share 0 Tweet 0
  • Rehab, expansion of General Santos airport seen completed by Q2

    0 shares
    Share 0 Tweet 0
No Result
View All Result

Your information is secure and your privacy is protected. By opting in you agree to receive emails from us and our affiliates. Remember that you can opt-out any time, we hate spam too!

Highlights

Best TVs of 2022: Which should you buy?

Difference Between Mighty Plus Vaporizer and Pax 3 Vaporizer

ING to exit PHL retail banking business by this year

Expats Move to Portugal for Low Expenses, Charming Villages and Seaside Views

Why You Should Consider Buying Used Construction Machinery for Business?

British businesses must work harder to entice employees back to office

Trending

PHINMA Corp. to conduct annual stockholders’ meeting through remote communication on July 14
Politics News

PHINMA Corp. to conduct annual stockholders’ meeting through remote communication on July 14

by
June 25, 2022
0

Spotlight is BusinessWorld’s sponsored section that allows advertisers to amplify their brand and connect with BusinessWorld’s audience...

ACE Malolos Doctors announces schedule of hybrid stockholders’ meeting on July 18

ACE Malolos Doctors announces schedule of hybrid stockholders’ meeting on July 18

June 24, 2022
How To Automate a Workflow: Step-by-Step Guide

How To Automate a Workflow: Step-by-Step Guide

June 24, 2022
Best TVs of 2022: Which should you buy?

Best TVs of 2022: Which should you buy?

June 24, 2022
Difference Between Mighty Plus Vaporizer and Pax 3 Vaporizer

Difference Between Mighty Plus Vaporizer and Pax 3 Vaporizer

June 24, 2022

Disclaimer: ConsciousInvestingToday.com, its managers, its employees, and assigns (collectively “The Company”) do not make any guarantee or warranty about what is advertised above. Information provided by this website is for research purposes only and should not be considered as personalized financial advice.
The Company is not affiliated with, nor does it receive compensation from, any specific security. The Company is not registered or licensed by any governing body in any jurisdiction to give investing advice or provide investment recommendation. Any investments recommended here should be taken into consideration only after consulting with your investment advisor and after reviewing the prospectus or financial statements of the company.

  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

Copyright © 2021 ConsciousInvestingToday. All Rights Reserved.

No Result
View All Result
  • Home
  • About Us
  • Privacy Policy
  • Terms & Conditions
  • Contact Us
  • Email Whitelisting

© 2022 JNews - Premium WordPress news & magazine theme by Jegtheme.