Phl gets lowest score in S&P insolvency review

The Philippines emerged in the lowest category in global ranking of insolvency regimes, with S&P Global Ratings citing weak protections for creditors and unpredictable outcomes when companies undergo rehabilitation or bankruptcy.

- By KEISHA TA-ASAN

The global debt watcher classified the Philippines as a Group C jurisdiction based on its assessment released yesterday.

The classification does not affect the country's existing credit ratings, S&P stressed.

"The Group C jurisdiction ranking assessment on the Philippines reflects the country's overall weak legal framework for creditors. We assessed the Philippines' creditor-friendliness as weak and the rule-oflaw risk as high," the credit rating agency said.

A jurisdiction ranking shows how well a country's laws protect lenders and investors when a company can no longer pay its debts.