Upbeat No. 29.09.14 nn No. 2118 10.30.2008
PHL, positive investment grade ratings - NICE Ratings Inc. The Philippines received a positive investment grade from the South Korea-based credit rating firm, the National Information and Credit Evaluation (NICE) Ratings Inc. NICE Ratings raised the country’s long-term, foreign-currency rating by a notch from junk to the minimum investment grade of BBB-. It is the first time that NICE Ratings gave the Philippines an investment status. It gave a “positive” outlook on the Philippines, and there is another possible upgrade within the short term.
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“The outlook is positive. It reflects the improved growth potential backed by institutional reforms and greater investment in infrastructure,” NICE Ratings said in its latest report.
The credit rating firm mentioned the country’s ability to withstand economic growth this year. The Philippine economy grew by 6% in 2014’s first half. “Reconstruction or rebuilding projects to recover damages from the natural disasters are rather likely to spur the economy, and the service and manufacturing industries will continue driving economic growth together,” the rating firm said. However, manufacturing grew by an average of 7.9% from 2010 to 2013, which outdone the 6.7% growth for the services sector. The rating firm credited the Philippines for its strong external liquidity, stable financial markets, and much improved fiscal situation. “In the face of the sell-off of financial assets in emerging markets since May 2013, the Philippines’ financial market remained relatively stable, thanks to the strong current account position and abundant liquidity in the financial market,” NICE Ratings noted. Bangko Sentral ng Pilipinas (BSP) was also recognized for properly managing inflation, mentioning recent adjustments in monetary policy setting, and introducing new regulations to prevent price bubbles in the real estate sector. “This vote of confidence acknowledges efforts to ensure the country is able to sustain improvements in the economy over the long haul,” Department of Finance (DOF) Secretary Cesar V. Purisima said acknowledging the upgrade given by NICE Ratings.