Resiliency is Phl’s ticket to further upgrade – BSP
MANILA, Philippines - The Bangko Sentral ng Pilipinas is banking on the economy’s “resiliency†and “growth sustainability†for further upgrades from global debt watchers to encourage more investments, a central bank official said.
“Some economies will grow for four or five consecutive quarters then contract but the (Philippine) economy has grown for 60 consecutive quarters,†BSP Deputy Governor Diwa C. Guinigundo told reporters.
The central bank official said that of the big three–Moody’s, Standard & Poor’s, and Fitch Ratings–Moody’s has always been “very positive†on the Philippine economy’s prospects.
“In fact, it’s the only one that gave us a positive credit rating outlook which means that for the next 18 months, there is a chance that... you can be upgraded (further),†Guinigundo explained.
Moody’s in October last year upgraded the country’s rating to investment grade from junk, awarding the Philippines a ‘Baa3’ with a positive outlook.
It was the third major debt watcher to do so, following Fitch in March last year and S&P in May 2013.
The long-awaited investment grade ratings are seen increasing foreign investments to the country and decreasing borrowing costs for Philippine firms, among others.
The BSP has time and again expressed confidence on further upgrades being awarded to the Philippines due to its robust economic growth, favorable external debt dynamics, and institutional reforms being implemented, just to name a few.
“A lot of very significant reforms have been undertaken, the economy has expanded, inflation has stabilized, the public demand has improved tremendously, and the banking system has continued to improve,†Guinigundo said.
“And the progress is also not limited to Metro Manila alone,†he pointed out.
The Philippine economy grew by a faster-than-expected 7.2 percent last year, while inflation has remained manageable at three percent.
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