THE Aquino administration welcomed the move of the Standard & Poor’s (S&P) for raising its credit rating outlook for the Philippine economy from stable to positive.
“Standard & Poor’s (S&P) has raised its credit rating outlook for the Philippine economy from “BB+ Stable” to “BB+ Positive.” This means that we can expect, barring any unforeseen circumstances, an actual credit rating upgrade in the coming months,” Presidential Spokesperson Edwin Lacierda said in a statement issued on Thursday.
“In its rationale, S&P hailed the Aquino administration for its “improved capacity to effect reform,” according to Lacierda, which he said stems from “a level of legitimacy, support, and stability that reduced political uncertainty and allows for improved legislative efficiency.”
Lacierda said the improved outlook comes at the heels of the signing of the landmark bill reforming sin taxes that will further strengthen the government’s fiscal position.
“We welcome this acknowledgment of the positive strides the Philippines has taken under the Aquino administration and a recognition of our thrust that indeed good governance results in good economics,” he said.
A positive outlook means a country’s rating may be raised within the next year.
“We revised the outlook to positive to reflect our reappraisal of the political and institutional factors underlying the ratings,” analyst Agost Benard said in the statement. (PCOO)
