Manila – Stakeholders of the Philippine Stock Exchange (PSE) have expressed optimism following Standard and Poor’s (S and P) Global Ratings’ affirmation of the Philippines’ ‘BBB+’ long-term and ‘A-2’ short-term sovereign credit ratings. The affirmation by the New York-based S and P Global Ratings was welcomed as a positive sign amid a challenging global economic climate.
According to Philippines News Agency, this development comes shortly after Fitch Ratings, another American credit rating agency, maintained the Philippines’ ‘BBB’ rating with a stable outlook earlier this month.
Astro del Castillo, managing director of First Grade Finance, lauded S and P’s steady ratings as indicative of effective economic management in the Philippines. Del Castillo contrasted the country’s stable ratings with the downgrades experienced by developed economies, including the United States. He noted that the US faced downgrades by Moody’s and Fitch Ratings earlier this year, due to issues like large fiscal deficits and declining debt affordability.
Francis Chua, chairman of BA Securities and chairman emeritus of the Philippine Chamber of Commerce and Industry (PCCI), echoed these sentiments, emphasizing the significance of maintaining stable ratings. Chua credited President Ferdinand R. Marcos Jr. and his economic team for the country’s financial stability. S and P Global Ratings, in affirming the Philippines’ credit standing, highlighted the nation’s sustained economic recovery, driven by government efforts to address infrastructure gaps and improvements in the business environment. S and P Global Ratings is part of S and P Global, a prominent financial research and analysis firm and one of the ‘Big Three’ credit-rating agencies.