S&P Global affirmed the Philippines’ ‘BBB+’ long-term and ‘A-2’ short-term sovereign credit ratings with stable outlook because of the country’s sustained economic recovery and strong external position.
“The stable outlook reflects our expectation that the Philippine economy will maintain healthy growth rates and the fiscal performance will materially improve over the next 24 months,” S&P Global said in a Nov. 28 report.
It cited the Philippines’ above-average economic growth potential compared to its peers, supported by stable macroeconomic fundamentals, the government’s sound macroeconomic policy and fiscal consolidation strategy through the country’s first-ever Medium-Term Fiscal Framework (MTFF).
“The Marcos, Jr. administration is committed to pursuing the path of fiscal consolidation and introducing sound policies and structural reforms to strengthen the country’s fiscal and economic position to maintain if not improve this favorable assessment,” Diokno said Wednesday.
S&P said it expects the Philippines to achieve a moderate real gross domestic product (GDP) growth of 5.4 percent in 2023 considering the impact of external macroeconomic developments and a high base.
It said these external factors include the projected slower world economic growth, particularly from the Philippines’ largest trading partners––China and the US.
“Economic recovery for the Philippines post the pandemic has remained robust, but near-term risks presented by global conditions persist,” it said.
S&P said the ratings on the Philippines reflect the country’s above-average economic growth potential, which should drive constructive development outcomes and underpin broader credit metrics.
