Lawmakers hail Fitch Ratings upgrade of RP ‘country ceiling’

Pro-administration lawmakers expressed elation yesterday over credit ratings agency Fitch Ratings’ decision to raise the ‘country ceiling’ for the Philippines which they said only shows the country is moving forward under President Arroyo, despite the political noise from the opposition.

The lawmakers urged the opposition to refrain from attacking against the Arroyos, to give the Philippines a better chance to grow at a faster clip. "These irresponsible accusations only hurt our people by smearing our image abroad," they said.

The Fitch Ratings’ upgrade according to Reps. Eduardo Zialcita (Lakas, Parañaque), chairman of the House committee on housing and urban development, and Joel Mayo Almario (Lakas, Davao Oriental), chairman of the committee on games and amusements, comes in the midst of the political turmoil the opposition is seeking to whip up with its failed impeachment bid and black propaganda, proves that the country is still in the right direction owing to the sound economic policies of the administration.

They said this positive development also came after DBS, Singapore’s largest bank, predicted the peso testing the 50-to-the-dollar level by the end of the year and possibly breaking into the 49 to $1 mark level by the first quarter of next year because the outlook for the Philippine peso is brightening with "upgrades in the outlook for budget, exports and overseas worker remittances

Zialcita said Fitch Ratings’ upgrade of the country’s country ceiling is a prelude for more positive developments like a ratings upgrade from the different ratings agencies, and a consequent surge in investments.

This recent upgrade, he said, is an affirmation of the confidence of the international community in the performance of the administration.

Almario said Fitch Ratings’ vote of confidence in the country should move every sector to support the President’s economic initiatives because this is the only way for the Philippines to gain its place among the first world countries, as envisioned by her.

"We should take advantage of this positive development to attract more investors so we can sustain the economic momentum."

Earlier, Fitch Ratings raised the "country ceiling" for the Philippines from "BB" to "BB+" as part of its regular and on-going review of its criteria and methodologies. It said country ceilings are not ratings, but are "key analytical inputs" on the foreign currency ratings of sovereigns. It explained the upgrades of country ceilings reflect the liberalization of capital and exchange controls in many emerging market economies, the strengthening of monetary and exchange rate regimes and the deepening integration of emerging markets in the global economy.