ASEAN KEY DESTINATIONS
Philippines credit gets reviewed
BSP Governor Amando Tetangco Jr. said Philippine economic managers met officials of the credit rating agencies on the sidelines of the 2011 Annual Joint Meeting of the International Monetary Fund and World Bank in Washington, D.C.
“It was clear from the discussions that the Philippines is well-positioned for any global slowdown. The CRAs acknowledged that the country has considerable policy flexibility to deal with global economic and financial uncertainties,” Tetangco said.
He said the CRAs noted the country’s robust external liquidity position, with gross international reserves of $76 billion at end-August exceeding gross external debt of $61 billion at end-March; external debt ratios that are better than many of the country’s peers; and monetary authorities’ handling of surges in foreign capital.
The CRAs also recognized the stable banking sector as an important factor in helping to fuel economic growth, the BSP chief said.
He said the passage of Republic Act 10149 or the GOCC Governance Act of 2011 was well-received.
The Philippines has enjoyed credit rating upgrades from the three major credit rating agencies—Moody’s, Standard and Poor’s and Fitch Ratings—as well as a change in outlook to positive from the Japan Credit Rating Agency.
Philippines’ current rating is within one to two notches below investment grade.
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