Palace welcomes S&P’s credit rating upgrade for Phl

MANILA, Philippines - Malacañang welcomed yesterday the latest credit rating upgrade that Standard & Poor’s gave to the Philippines.

On Thursday, S&P announced that the country’s credit rating has advanced to “BBB” from the previous “BBB-”.

“We’re gratified by S&P’s decision to raise the credit rating to a notch higher than investment grade. We are hopeful that this will eventually translate into increased investments and accelerated jobs generation,” Secretary Herminio Coloma Jr. said in a statement.

Coloma said the administration of President Aquino is “committed to strengthen public institutions, and build increased capacity among citizens and communities, and thereby promote the attainment of inclusive growth.”

“This is the path that leads to sustained economic development and the raising of the Filipino people’s quality of life,” the head of the Presidential Communications Operations Office said.

Budget Secretary Florencio Abad said the latest upgrade – the highest rating ever given to the country – is another affirmation of the country’s strong economic fundamentals.

“At the same time, it validates the progress and expected sustainability of the Aquino administration’s governance reforms,” he said.

Abad said the good news recognizes the gains brought about by the public financial management reforms that have been instituted.

“We are on the right track in terms of continuously improving our public spending efficiency primarily in ramping up investments for infrastructure projects, among other key priority and substantial programs,” he said.

“Moreover, this vote of confidence from international investment analysts also raises our global competitiveness and further increases our attractiveness to foreign investors,” Abad said.

Senate President Franklin Drilon also echoed the budget chief’s statement that the latest credit rating upgrade given to the Philippines is “a reflection of the soundness of the fundamental aspects of our economic strategy, which have led to many successes that were achieved despite drawbacks such as the wave of natural and man-made disasters that hit the country.”

Drilon said the improved revenue collection of the government also played a major part.

In 2013, P103.8 billion out of the total P1.217 trillion revenues collected by the state was made possible by the implementation of the Sin Tax Act of 2012.

“All these historic credit rating upgrade and rosy economic figures would only be appreciated by our people if they are translated into more jobs and food on the table of every Filipino family,” he said.  

He added that it remains the government’s responsibility to ensure that the fiscal advantages and benefits that come with this investment upgrade should be utilized to further eradicate poverty and to generate economic opportunities for ordinary Filipinos.

Drilon said he will lead the Senate in ensuring that economic and pro-consumer bills are passed in a bid to boost shared economic growth.  â€“ With Christina Mendez