PH Credit Ratings
Last May 8, 2014, Standard & Poor’s Financial Services (S&P) upgraded the Philippines’ long-term sovereign credit rating from BBB- Stable to BBB Stable, the highest rating ever recorded in the country’s history. This set the country’s credit rating a notch higher than the minimum investment grade status granted to it by S&P on May 2, 2013, making the Philippines more internationally competitive and attractive to investments.
A BBB Stable credit rating for the country means the Philippines has an adequate capacity to pay its debts fully and on time. “Stable” means the rating has a “stable outlook”; it is likely not to change within a year. This credit rating is also projected to be sustained and further upgraded in the coming months, as a result of the stable economic progress due to the reforms the country experiences thus far. This grade gives the Philippines a good financial reputation to potential foreign investors for 2014 and the years to come.
Aside from S&P, Fitch Ratings (Fitch) and Moody’s Investors Service (Moody’s) are also two of the major credit rating agencies in the world. Fitch granted a BBB- Stable rating last March 27, 2013 while Moody’s granted the Philippines a Baa2 Stable rating last December 11, 2014, both fall under Investment Grade. Among the three, S&P has conducted the latest and granted the highest credit rating.