Sign up | Log in



Home  >>   Daily News  >>   Philippines News  >>   Economy  >>   Philippines gets no rating upgrade
NEWS UPDATES Asean Affairs              30  July 2011

Philippines gets no rating upgrade

Related Stories

July 29, 2011
Philippine central bank keeps rate steady

July 27, 2011
Philippine executives have transparency

July 1, 2011
Philippines foreign debt increases

June 29, 2011
Philippines revises price index

June 20, 2011
Philippines taxes may increase in 2012

June 16, 2011
Philippines credit rating raised

June 8, 2011
Philippine reserves continue rising

May 31, 2011
Philippines growth slows

The Philippines failed to snag a fresh upgrade from Standard & Poor’s even after Manila’s representations for a lift in its credit rating.

In a statement from Singapore, Standard & Poor’s Ratings Services said it kept its “BB/B” foreign currency and “BB+/B” local currency sovereign credit rating on the Philippines.

S&P kept a stable outlook, which means the current rating may stay for the next six months to a year.

The debt watcher also kept its “axBBB+/axA-2” Asean scale rating, “BB” foreign currency senior unsecured issue rating, “BB+” local currency senior unsecured rating, and “B” short-term local currency debt rating on the Philippines.

S&P also “affirmed its recovery rating of ‘3’ on the Philippines, which denotes our expectation of 50 percent-70percent recovery in the event of a distressed debt exchange or payment default. The transfer and convertibility assessment of ‘BB+’ is unchanged.”

“The rating on the Philippines is constrained by the country’s relatively low income level, weak fiscal profile, and high, albeit improving, public sector debt and interest burden,” said Agost Benard, S&P credit analyst.

“Strong external liquidity, low external liability position, and a record of moderately strong economic growth support the rating. The stable outlook encapsulates our expectation that remittances and BPO receipts will continue to drive current account surpluses, while prevailing government debt and interest burdens and the weak fiscal profile will take time to resolve,” Benard added.

S&P said any further hike in the Philippines’ ratings would depend “on evidence of material progress in achieving a sustainable structural revenue improvement, or further strengthening of the external balance sheet, yielding reduced vulnerability to shocks.” “Conversely, we may lower the ratings if a weakened commitment to fiscal consolidation results in a heavier debt burden, or if the external liquidity position deteriorates significantly, possibly precipitated by unfavorable macroeconomic policies or political instability,” the debt watcher said.

S&P last raised Manila’s credit rating on November 12, 2010. This set off similar hikes by Moody’s and Fitch, placing the Philippines’ debt score a notch below investment grade.

Moody’s raised its credit rating on the Philippines on June 15, upgrading the country’s long-term foreign and local currency ratings to Ba2 from Ba3, with a stable outlook.

This was followed by Fitch, which on June 23 raised Manila’s foreign currency ratings to BB+ from BB, also with a stable outlook.

Philippine officials have been pining for a further hike in the country’s credit rating, citing resilient economic growth, an improving fiscal position, and a widening balance of payments surplus.

The Bangko Sentral ng Pilipinas had said the country was “under-rated” vis-à-vis its peers.


Reach Southeast Asia!
10- Nations, 560- Million Consumers
And $1 -Trillion Market
We are the Voice of Southeast Asia Media Kit
The only Media Dedicated to Southeast Asia Advertising Rates for Magazine
  Online Ad Rates

Comment on this Article. Send them to

Letters that do not contain full contact information cannot be published.
Letters become the property of AseanAffairs and may be republished in any format.
They typically run 150 words or less and may be edited
submit your comment in the box below




1.  Verifier

1. Verifier

For security purposes, we ask that you enter the security code that is shown in the graphic. Please enter the code exactly as it is shown in the graphic.
Your Code
Enter Code

Today's  Stories    30  July  2011 Subsribe Now !
• Cambodian wins Magsaysay award
Subcribe: Asean Affairs Global Magazine
• Indonesia continues ban on workers to Saudis Asean Affairs Premium
• Indonesia tries to boost local films
Research Reports
on Thailand 2007-2008

•Textiles and Garments Industry

•Coffee industry

•Leather and footwear industry

•Shrimp industry

• Saudi hiring poses problems to Philippine labor market
• Philippines gets no rating upgrade
• Singapore industry is optimistic
• Thailand should focus on agriculture
• Thai tourism goes after MICE p

Asean Analysis    30  July  2011

Advertise Your Brand
• WEEKLY SUMMARY Sponsor Our Events

Asean Stock Watch    29  July  2011 

• Asean Stock Watch-June 29 p

ASEAN NEWS UPDATES      Updated: 04 January 2011

 • Women Shariah scholars see gender gap closing
• Bank Indonesia may hold key rate as inflation hits 7 percent

• Bursa Malaysia to revamp business rules
• Private property prices hit new high in Singapore
• Bangkok moves on mass transport
• Thai retailers are upbeat
• Rice exports likely to decline
• Vietnamese PM projects 10-year socioeconomic plan


This year in Thailand-what next?

AseanAffairs   04 January 2011
By David Swartzentruber      

It is commonplace in journalism to write two types of articles at the transition point between the year that has passed and the New Year. As this writer qualifies as an “old hand” in observing Thailand with a track record dating back 14 years, it is time take a shot at what may unfold in Thailand in 2011.

The first issue that can’t be answered is the health of Thailand’s beloved King Bhumibol, who is now 83 years old. He is the world's longest reigning monarch, but elaborate birthday celebrations in December failed to mask concern over his health. More


Home | About Us | Contact Us | Special Feature | Features | News | Magazine | Events | TV | Press Release | Advertise With us

| Terms of Use | Site Map | Privacy Policy  | DISCLAIMER |

Version 5.0
Copyright © 2006-2021 TIME INTERNATIONAL MANAGEMENT ENTERPRISES CO., LTD. All rights reserved.
Bangkok, Thailand