Malacañang grants victory lap to economic team after S&P upgrade

MALACAÑANG said on Thursday that the sovereign credit rating upgrade issued by Standard & Poor’s (S&P) confirms the positive impact of policies implemented by the government’s economic managers.

S&P on Tuesday raised the Philippines’ long-term credit rating to “BBB+” from “BBB.”

In a statement, the President’s Spokesperson Salvador S. Panelo noted that a higher credit rating means a borrower country is a “creditworthy sovereign that can have access to a wider pool of funds.”

“This is the highest credit rating in the economic history of the Philippines,” he added.

Mr. Panelo attributed the rating to the performance of President Rodrigo R. Duterte’s economic managers.

He said “the economic team of the President has done a splendid job in putting the economic house in order and spearheading bold economic reforms, in cooperation with Congress, in bolstering the domestic economy, which is projected to become a top-25 economy.”

The reforms, he added, “include tax reform, liberalization of the rice sector, strengthening of the Bangko Sentral ng Pilipinas charter, ease of doing business, relaxing the foreign investment negative list and modernizing infrastructure, among others.”

Mr. Panelo said the President “understands that a thriving economy under an environment free from drugs, crime and corruption is essential to bring our people to a life which is comfortable and secure.”

Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa C. Guinigundo was quoted as saying in a statement from the Investor Relations Office (IRO) Tuesday: “With such an upgrade, this would bring more interest among foreign investors to participate in the growth process and in the end, further establish and strengthen the upward trajectory of the Philippine economy.”

In the same statement, National Treasurer Rosalia V. De Leon said the upgrade is a “recognition of our sound policies on liability management.”

“We have kept our debt in check — even as we invest more on infrastructure and social services. We are committed to fiscal discipline, and this makes the Philippines a truly creditworthy sovereign in the eyes of the international financial community,” she added. — Arjay L. Balinbin