Investment grade rating possible this year – Palace

MANILA, Philippines - Malacañang is hopeful that the Philippines will finally receive investment grade from credit rating agencies this year given the reforms instituted both in finance and governance.

Presidential Spokesman Edwin Lacierda also said the gains being highlighted in President Aquino’s message for the New Year did not mean to again criticize the previous administration but were just factual comparisons.

“We have progressed so much from where we came from and 2012 was a banner year for the President, for his administration. And we look forward to the continued growth of our economy and the increased job generation that will be brought about by the economy,” Lacierda said.

“Also, we are hoping that this next year will be a period for a continued rehabilitation and improvement of our country’s overall situation. And hopefully, if credit ratings agencies will see fit, they will give us an investment grade,” he said.

British banking and financial services company Barclays said the Philippines would likely receive its first investment grade in the second half of this year with the enactment of sin tax law and other reforms.

Officials have been saying that fiscal reforms including new laws, intensified revenue collection and debt restructuring are in the forefront of the Aquino administration.

Standard and Poor’s, Moody’s Investor Service and Fitch Ratings have all raised the country’s credit outlook.

Barclay’s said the country could face consecutive credit rating upgrades once the rationalization of fiscal incentives and mining sector reform bills were passed along with tax reform measures.

The administration also maintains that good governance is good economics and that the country’s politically stable, with strong fundamentals.

The Bangko Sentral ng Pilipinas said the country got manageable inflation, a low deficit, strong and consistent economic growth and healthy external profile that should be considered for an investment upgrade.

The BSP said the Philippines would just have to sustain the momentum and gun for a higher growth path.

Despite economic growth, the government concedes the rate of joblessness and poverty remain high and can only be addressed by sustained reforms that will attract investors.