There is high optimism in the administration for a rosier economic landscape and more foreign investments after the Philippines’ recent credit rating outlook upgrade to “positive” by Standard & Poor’s (S&P) Global Ratings.
National Economic and Development Authority (NEDA) Secretary Arsenio Balisacan told a press briefing in Malacañang on Thursday the development reflects the unified leadership and effective governance of President Ferdinand R. Marcos Jr.
Balisacan said with the positive outlook, the administration is looking to achieve an “A” rating in the next 24 months.
“And with that comes, of course, a much more positive picture for the economy particularly in relation to access to credits, to the custom credit by both the government and the private sector because being given an ‘A’ rating means that you are a prime borrower and so it may end up the cost of capital in the market will be cheaper for you than otherwise will be the case,” he said.
According to Balisacan, the upgrade of the country’s credit rating to positive shows S&P’s recognition of the government achievements and accomplishments in the area of economic development and efforts to stabilize the fiscal condition, particularly in implementing the fiscal consolidation program.
It is also a recognition of the implementation of many reforms intended to improve the potentials of the economy moving forward, he added.
In the same briefing, Trade Secretary Maria Cristina Roque said the credit rating outlook upgrade indicated confidence in the Philippines.
“This high credit rating will really encourage a lot of confidence for the international investors to come into our country and, so far, there is a lot of interest in our country. So, we are looking forward to a lot of international investment and foreign investors also to come in,” she said.
The S&P pointed to the Philippines’ above-average growth potential, effective policymaking, fiscal reforms, improved infrastructure and policy environment, and solid external position as key factors driving the affirmation and outlook upgrade. | PND
