In a vote of confidence, international debt watcher S&P Global upgraded the 
country's credit rating from "BBB" to "BBB+" with a "stable" outlook.

In a report released Tuesday, 30 April 2019, S&P recognized the strengths of 
the Philippine economy that affirms the country's creditworthiness. 

S&P observed, "The Philippines has above-average economic growth, a healthy 
external position, and sustainable public finance."  The stable outlook on the 
rating, "reflects our view that the Philippine economy will maintain its 
momentum over the medium term, in combination with contained fiscal deficits 
and stable public indebtedness."

The upgrade from S&P follows sustained robust economic growth -- which has 
consistently settled above the 6.0-percent mark for the last 15 quarters 
despite global economic challenges. It comes after the continued exercise of 
fiscal discipline as the government invests more in much needed infrastructure 
and human capital development.

The upgrade recognizes implementation of vital policy and infrastructure 
reforms seen to fuel robust, sustainable, and more inclusive economic growth 
for the Philippines. Major reforms include laws on tax reform, liberalization 
of the rice sector, and strengthening of the Bangko Sentral ng Pilipinas' 
charter, as well as initiatives to increase the ease of doing business and 
relax the foreign investment negative list.  

In response to the favorable rating action by S&P, Finance Secretary Carlos 
Dominguez III said that "S&P Global's credit rating upgrade for the Philippines 
by one notch higher to "BBB+" is an undeniable tribute to President Duterte's 
unwavering commitment to bold reforms and sound economic policies as embodied 
in the 10-point Socioeconomic Agenda of the administration and his strong 
political will to get these tough initiatives done at the soonest."  

"To his credit, President Duterte has transcended all the political chatter and 
stayed focused on pursuing policy initiatives, such as tax reform, trade 
liberalization and infrastructure modernization, that are necessary to sustain 
the growth momentum, attract investments and ensure financial inclusion for all 
Filipinos on his watch. We also want to thank the legislature for their support 
of the President's socioeconomic program," Dominguez added.

National Treasurer Rosalia De Leon welcomed the news, stating that, "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."

Bangko Sentral ng Pilipinas (BSP) Governor Benjamin Diokno said S&P's favorable 
rating action is recognition of sound economic management, prudent monetary 
policy, and strong financial sector supervision.  

"Over the years, the BSP has remained committed to its price and financial 
stability mandates, providing an enabling environment for the economy to 
flourish. Armed with a new charter that strengthens its ability to carry out 
its primary mandate of price stability and supervise the banking sector, the 
BSP will continue to lend support to the economic development goals of the 
country," Diokno said.

The new rating is just a notch away from "A minus" rating, which is within the 
sterling "A" credit-rating territory.   

SOURCE  Bangko Sentral ng Pilipinas (BSP)