{"id":5395,"date":"2024-11-27T05:14:33","date_gmt":"2024-11-27T04:14:33","guid":{"rendered":"https:\/\/wsj-crypto.com\/?p=5395"},"modified":"2024-11-27T05:14:33","modified_gmt":"2024-11-27T04:14:33","slug":"sp-upgrades-philippines-outlook-to-positive","status":"publish","type":"post","link":"https:\/\/wsj-crypto.com\/index.php\/2024\/11\/27\/sp-upgrades-philippines-outlook-to-positive\/","title":{"rendered":"S&amp;P Upgrades Philippines Outlook to &#8216;Positive&#8217;"},"content":{"rendered":"\n<p class=\"p3\">By <b>Luisa Maria Jacinta C. <\/b><span class=\"s3\"><b>Jocson, <\/b><\/span><i>Correspondent<\/i><\/p>\n<p class=\"p5\"><span class=\"s4\">S&amp;P GLOBAL RATINGS<\/span> confirmed the Philippines\u2019 investment grade rating on Tuesday and elevated its outlook to \u201cpositive\u201d from \u201cstable\u201d to signify the economy\u2019s robust growth potential in light of bolstered institutional strength resulting from \u201ceffective policy making.\u201d<\/p>\n<p class=\"p6\"><span class=\"s7\">The ratings agency on Tuesday affirmed its \u201cBBB+\u201d long-term credit designation for the nation, which is a step below the \u201cA\u201d level grade aimed for by the government. It also maintained its \u201cA-2\u201d short-term rating for the Philippines. <\/span><\/p>\n<p class=\"p6\">Nevertheless, S&amp;P Global raised its rating outlook to \u201cpositive\u201d from \u201cstable.\u201d A positive outlook indicates that the Philippines\u2019 credit rating could be elevated over the upcoming two years if advancements are sustained.<\/p>\n<p class=\"p6\">\u201cOur enhanced institutional evaluation propels our positive outlook on the Philippines. We believe the strengthening of the nation\u2019s institutional frameworks, which has significantly improved the sovereign\u2019s credit metrics over the past decade, will persist,\u201d S&amp;P Global remarked in a statement. \u201cThis is illustrated by the strong economic rebound in the last two years, along with ongoing reforms to augment business and investment conditions.\u201d<\/p>\n<p class=\"p6\">\u201cThis enhancement could yield stronger sovereign support over the next 12-24 months if the Philippines\u2019 economy sustains its external strength, healthy growth rates, and an improvement in fiscal performance.\u201d<\/p>\n<p class=\"p6\">Bangko Sentral ng Pilipinas (BSP) Governor Eli M. Remolona, Jr. expressed that the ratings agency\u2019s upgraded outlook \u201creflects the efforts made by the government to enhance the economic, fiscal, and monetary landscape, allowing robust growth to persist.\u201d<\/p>\n<p class=\"p6\">Finance Secretary Ralph G. Recto similarly stated that this \u201creaffirms our stable economic and political climate, putting us on course for a growth-promoting fiscal consolidation.\u201d<\/p>\n<p class=\"p6\">\u201cWe have devised a thorough \u2018Road to A\u2019 initiative aimed at ensuring that we secure further upgrades shortly,\u201d he added.<\/p>\n<p class=\"p6\">S&amp;P Global indicated that the Philippines\u2019 sovereign rating represents the economy\u2019s \u201cabove-average growth potential.\u201d<\/p>\n<p class=\"p6\">\u201cThis strength supports positive development outcomes. The ratings are further reinforced by the country\u2019s strong external position,\u201d it elaborated.<\/p>\n<p class=\"p6\">For the first nine months of the year, the Philippine economy recorded a growth of 5.8%, slightly beneath the government\u2019s target of 6-7% gross domestic product (GDP) growth for this year.<\/p>\n<p class=\"p6\">The government aims for a GDP growth of 6.5-7.5% the following year and a range of 6.5-8% growth from 2026 to 2028.<\/p>\n<p class=\"p6\">S&amp;P Global anticipates Philippine GDP growth to average 5.5% this year, propelled by exports and declining inflationary pressures.<\/p>\n<p class=\"p6\">\u201cContinuing reforms in the business, investment, and taxation sectors are expected to benefit growth in the coming three to four years.\u201d<\/p>\n<p class=\"p6\">The Philippine economy is projected to grow at an average of 6.2% per year over the next three years, it added.<\/p>\n<p class=\"p6\">\u201cStrong household and corporate balance sheets, along with substantial remittance inflows, underpin the Philippine economy\u2019s favorable medium-term trajectory,\u201d S&amp;P Global stated.<\/p>\n<p class=\"p6\">\u201cEfforts to address infrastructure deficiencies and enhancements in the business environment through regulatory and tax reforms should also bolster growth in economic productivity.\u201d<\/p>\n<p class=\"p8\"><b>FISCAL REFORMS<br \/>\n<\/b><span class=\"s6\">The government\u2019s fiscal reforms <\/span>have also improved the economic outlook, the credit agency stated.<\/p>\n<p class=\"p6\">\u201cWe believe that effective policymaking in the Philippines has introduced structural enhancements to the country\u2019s credit metrics. Fiscal reforms have elevated government revenue as a percentage of GDP and facilitated public investment. Enhanced infrastructure and policy frameworks have helped maintain robust economic growth throughout much of the past decade,\u201d it asserted.<\/p>\n<p class=\"p6\">\u201cThe government\u2019s fiscal and debt frameworks had declined due to the economic repercussions of the pandemic and the accompanying extraordinary policy measures. Fiscal buffers established through a long history of prudence before the pandemic were diminished, yet consolidation has commenced with the economic recovery being well on track. The Philippines\u2019 low GDP per capita compared to other investment-grade sovereigns tempers these strengths,\u201d it continued.<\/p>\n<p class=\"p6\">Recent data from the Treasury showed that the budget deficit reduced by 1.35% to P970.2 billion during the first nine months.<\/p>\n<p class=\"p6\">The government is aiming to reduce the deficit-to-GDP ratio to 5.6% this year and further down to 3.7% by 2028.<\/p>\n<p class=\"p6\">\u201cThe Philippine government has generally implemented effective and prudent fiscal strategies over the past decade. Enhancements to the quality of expenses, manageable fiscal deficits, and relatively low general government indebtedness attest to this,\u201d S&amp;P Global noted.<\/p>\n<p class=\"p6\">However, the credit agency pointed out that restoring fiscal and debt conditions to pre-pandemic standards will be challenging and likely a gradual process.<\/p>\n<p class=\"p6\"><span class=\"s8\">\u201cThe ongoing economic recovery in the Philippines is expected to facilitate a reduction in the general government deficit and a further stabilization of the debt load,\u201d it stated. \u201cIt will, however, take several years for fiscal balances to revert to pre-pandemic levels given the diminished fiscal leeway.\u201d<\/span><\/p>\n<p class=\"p6\">S&amp;P Global added that it anticipates the nation\u2019s net general government debt to gradually decrease amid continued fiscal consolidation.<\/p>\n<p class=\"p6\">Looking ahead, the ratings agency mentioned it could enhance the Philippines\u2019 credit rating if the current account deficit and fiscal condition are managed effectively.<\/p>\n<p class=\"p6\">\u201cWe may elevate the ratings if our expectations of a decrease in current account deficits during the forecast period materialize such that buffers in the Philippines\u2019 narrow net external asset position are preserved and if the government achieves more expedited fiscal consolidation,\u201d it suggested.<\/p>\n<p class=\"p6\">S&amp;P Global expects the country\u2019s current account deficit to persist but remain at \u201cmodest levels.\u201d<\/p>\n<p class=\"p6\">The BSP estimates the current account deficit will reach $6.8 billion this year, equivalent to 1.5% of GDP. In the first half of the year, the nation\u2019s current account deficit stood at $7.1 billion, making up 3.2% of economic output.<\/p>\n<p class=\"p6\">Conversely, the rating outlook could be adjusted down to \u201cstable\u201d if economic recovery decelerates or if the government\u2019s fiscal and debt conditions weaken.<\/p>\n<p class=\"p6\">\u201cIf consistently large current account deficits result in a structural weakening of the Philippines\u2019 external balance sheet, we would also adjust the outlook to stable,\u201d S&amp;P Global added.<\/p>\n<p><br \/>\n<br \/><a href=\"https:\/\/www.bworldonline.com\/top-stories\/2024\/11\/27\/637524\/sp-raises-phl-outlook-to-positive\/\">Source link <\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>By Luisa Maria Jacinta C. Jocson, Correspondent S&amp;P GLOBAL RATINGS confirmed the Philippines\u2019 investment grade rating on Tuesday and elevated its outlook to \u201cpositive\u201d from \u201cstable\u201d to signify the economy\u2019s robust growth potential in light of bolstered institutional strength resulting from \u201ceffective policy making.\u201d The ratings agency on Tuesday affirmed its \u201cBBB+\u201d long-term credit designation<\/p>\n","protected":false},"author":3,"featured_media":5396,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[25],"tags":[189],"class_list":{"0":"post-5395","1":"post","2":"type-post","3":"status-publish","4":"format-standard","5":"has-post-thumbnail","7":"category-economy-and-markets","8":"tag-return-a-list-of-comma-separated-tags-from-this-title-sp-raises-phl-outlook-to-positive"},"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v26.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>S&amp;P Upgrades Philippines Outlook to &#039;Positive&#039; - WSJ-Crypto<\/title>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/wsj-crypto.com\/index.php\/2024\/11\/27\/sp-upgrades-philippines-outlook-to-positive\/\" \/>\n<meta property=\"og:locale\" content=\"it_IT\" \/>\n<meta property=\"og:type\" content=\"article\" \/>\n<meta property=\"og:title\" content=\"S&amp;P Upgrades Philippines Outlook to &#039;Positive&#039; - WSJ-Crypto\" \/>\n<meta property=\"og:description\" content=\"By Luisa Maria Jacinta C. Jocson, Correspondent S&amp;P GLOBAL RATINGS confirmed the Philippines\u2019 investment grade rating on Tuesday and elevated its outlook to \u201cpositive\u201d from \u201cstable\u201d to signify the economy\u2019s robust growth potential in light of bolstered institutional strength resulting from \u201ceffective policy making.\u201d The ratings agency on Tuesday affirmed its \u201cBBB+\u201d long-term credit designation\" \/>\n<meta property=\"og:url\" content=\"https:\/\/wsj-crypto.com\/index.php\/2024\/11\/27\/sp-upgrades-philippines-outlook-to-positive\/\" \/>\n<meta property=\"og:site_name\" content=\"WSJ-Crypto\" \/>\n<meta property=\"article:published_time\" content=\"2024-11-27T04:14:33+00:00\" \/>\n<meta property=\"og:image\" content=\"https:\/\/wsj-crypto.com\/wp-content\/uploads\/2024\/11\/PHL-flag-2-300x200.jpg\" \/>\n\t<meta property=\"og:image:width\" content=\"300\" \/>\n\t<meta property=\"og:image:height\" content=\"200\" \/>\n\t<meta property=\"og:image:type\" content=\"image\/jpeg\" \/>\n<meta name=\"author\" content=\"wsjcrypto\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:label1\" content=\"Scritto da\" \/>\n\t<meta name=\"twitter:data1\" content=\"wsjcrypto\" \/>\n\t<meta name=\"twitter:label2\" content=\"Tempo di lettura stimato\" \/>\n\t<meta name=\"twitter:data2\" content=\"5 minuti\" \/>\n<script type=\"application\/ld+json\" class=\"yoast-schema-graph\">{\"@context\":\"https:\/\/schema.org\",\"@graph\":[{\"@type\":\"WebPage\",\"@id\":\"https:\/\/wsj-crypto.com\/index.php\/2024\/11\/27\/sp-upgrades-philippines-outlook-to-positive\/\",\"url\":\"https:\/\/wsj-crypto.com\/index.php\/2024\/11\/27\/sp-upgrades-philippines-outlook-to-positive\/\",\"name\":\"S&amp;P Upgrades Philippines Outlook to 'Positive' - 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