S&P maintains positive economic outlook for Phl

Global debt watcher S&P Global Ratings has affirmed the Philippines' investment-grade credit standing, keeping the country at “BBB+” with a positive outlook as it expects external buffers to remain strong and fiscal consolidation to continue over the next two years.

- By KEISHA TA-ASAN

In a report released yesterday, S&P said it decided to maintain the Philippines' long-term “BBB+” and short-term “A-2” sovereign credit ratings despite a near-term slowdown in public infrastructure spending due to the ongoing probe into flood control projects.

"A slowdown in public infrastructure investment in the Philippines is weighing on its near-term growth prospects. However, we believe this is temporary and economic growth prospects remain strong," the credit ratings agency said.

The outlook staying positive reflects S&P's view that institutional and policy settings “could provide stronger support for sovereign credit metrics over the next 12 to 24 months.” S&P also kept the country's transfer and convertibility assessment at “A-”.

The ratings agency noted that the temporary halt in some infrastructure works, triggered by corruption investigations, would temper gross domestic product (GDP) growth this year and in 2025.