2014 FDI likely breached $6-B mark, says Domingo

MANILA, Philippines - Foreign direct investments (FDI) in the country likely breached the $6-billion mark in 2014 amid favorable economic conditions, according to the Department of Trade and Industry (DTI).

“It looks like we will exceed $6 billion (for FDIs) for 2014,” Trade Secretary Gregory Domingo told reporters, citing the country’s solid economic gains.

Latest data from the Bangko Sentral ng Pilipinas showed net FDI inflows amounted to $5.32 billion in the January to October period, up 64 percent from $3.24 billion in the same period in 2013.

The 10-month figure is also higher than the central bank’s $4.4-billion target for the year.

Given the country’s positive economic conditions, Domingo said the Philippines is ripe for another credit rating upgrade, particularly from Fitch Ratings.

“It (Fitch) is the only one that has not given us another upgrade,” he noted.

Fitch Ratings has assigned the country with the minimum investment grade of BBB- with a stable outlook.

In May, the Philippines received a one-notch credit upgrade to BBB with a stable outlook from Standard & Poor’s (S&P) Ratings Services.

Another credit rating agency, Moody’s Investors Service, raised the country’s rating to Baa2 from Baa3 with a stable outlook in December.

Moody’s upgrade is the same level as the rating assigned by S&P.

Domingo said he intends to discuss the country’s gains as well as know about Fitch Ratings’ concerns which prevent the debt watcher from giving the country another upgrade, during an upcoming meeting with the credit rating agency.

“What are there other concerns? I want to know that…so that if it can be corrected, then we will do that,” he said.