From BBB credit rating, Philippines has just received a BBB+ from S&P Global. The country has stayed at BBB rating for a while now and it’s really a great achievement to raise it by a notch considering that there is an improvement in our economy. Few of the solid points taken into account is the growth and solid fiscal and external spot of PH which have led to a stronger economic outline. Few more efforts to go and we’re going to get that A grade!
Catch me in my live training events! (quick plug)
The heart of why I do this seminars is I want to build a generation of Filipinos with the right foundation in stock investing. I want to bring smart investing to every Filipino around the world! If you would like to know more on how you could time the market checkout the trainings below.
Stock Smarts Singapore — May 18 & 19, 2019
Investment Conference 2019 – May 25, 2019
Stock Smarts Manila — June 15, 16, 22, 23, & 29, 2019
Stock Smarts Iloilo – July 6 & 7, 2019
Stock Smarts Cagayan De Oro – July 20 & 21, 2019
Stock Smarts Hong Kong – August 11, 2019
Stock Smarts UAE – August 30 – September 3, 2019
Stock Smarts Qatar — October 3 – 6, 2019
Stock Smarts Taiwan – November 2, 2019
S&P Global is looking forward to the country’s economy for the next 6 months to two years as this is the current assessment of the PH economy. According to the debt watcher, our economy is going to be stable for the next months and it is likely to stay at BBB+. It’s previous A-2 rating has been changed and converted to a higher level to “A-”, which will be achieved next time if the resources of our country are continued to be placed in good use. As a solid support, the economy’s external settings, strong government fiscal accounts, and low public indebtedness will keep our status steady to be able to manage the constructive development outcomes and sustain an extensive credit metrics over a medium period of time.
S&P believes that the country is one of the fastest growing economy as it predicts the annual gross domestic product (GDP) increase at 6.3% this 2019. The sustainability of the current economy will continue to expand and the GDP is likely to fall at 6.5%, 6.6%, and 6.7% in 2020, 2021, and 2022 respectively. Some major particulars that will help hold the country’s constructive trajectory include enough performing financial system, robust household and company balance sheet, increase of income, and substantial cash inflows from remittances. If the Philippines can get these things firm, the probability of getting a higher debt grade is high.
Apart from a greater debt rating outlook, S&P Global also expects that the government deficit will be sturdy. This will lessen the country’s debt burden and will surely increase the economy’s efficiency. The fiscal deficit this 2019 is anticipated to be at 1.8% of the GDP, considering that there is a delay in this year’s national budget which is likely to affect the PH credit rating negatively. Insufficient infrastructure and unsteady markets for exports can also hold back the progress of our economy. But despite sustainability as the greatest challenge for the Philippine market, we can nevertheless obtain the good position and we remain focused on our target.