Go Unlimited with Magzter GOLD
Get unlimited access to 10,000+ magazines, newspapers and Premium stories for just
Try GOLD - Free
S&P held off credit upgrade amid scandal
Manila Bulletin
|October 15, 2025
Debt watcher S&P Global Ratings could have upgraded the Philippines’ credit rating this year if not for the eruption of cases involving alleged corruption in the flood control budget, President Ferdinand R. Marcos Jr.’s chief economic manager revealed.
-
Department of Finance (DOF) Secretary Ralph G. Recto disclosed to reporters on the sidelines of the Senate finance subcommittee’s briefing on the DOF’s 2026 budget proposal that S&P held back on upgrading the Philippine sovereign credit rating from BBB+ to A-.
This comes after Recto cautioned that the proposal to trim the value-added tax (VAT) rate to 10 percent from the current 12 percent could hurt the country’s credit rating.
“If not for this flood control issue, when we met with S&P Global, they were ready to give us a credit rating upgrade. We were already going to move up a notch. It’s a pity,” Recto said on Tuesday, Oct. 14.
Despite this, the Finance chief remains hopeful that the credit rating agency will maintain its current rating and outlook for the Philippines.
On the VAT front, Recto said the rate reduction would erode government revenue collections, which the DOF estimates would drop by an average of P300 billion annually. This decline would be equivalent to one percent of the country’s economic output.
This story is from the October 15, 2025 edition of Manila Bulletin.
Subscribe to Magzter GOLD to access thousands of curated premium stories, and 10,000+ magazines and newspapers.
Already a subscriber? Sign In
MORE STORIES FROM Manila Bulletin
Manila Bulletin
Teacher who waited 14 years finally rises in rank
After 14 years of waiting for a career advancement, Evelyn Molavin is finally moving up the teaching ladder, an outcome she describes as more than just a promotion, but long-overdue recognition of years of service and sacrifice.
1 mins
April 29, 2026
Manila Bulletin
Digital use, AI boost financial inclusion—PIDS
Filipinos who actively use digital financial platforms are significantly more likely to own bank accounts and conduct formal financial transactions, with the state-run policy think tank saying stronger digital engagement is a key driver of financial inclusion in the country even as barriers such as lack of funds, high costs, and weak trust persist.
1 min
April 29, 2026
Manila Bulletin
Battle of hard hitters
Shai Nitura and Angge Poyos, two of the league’s top scorers, meet in a sudden death when Adamson and the University of Santo Tomas clash in the stepladder round of the UAAP women’s volleyball tournament at the Smart Araneta Coliseum on Wednesday, April 29.
1 min
April 29, 2026
Manila Bulletin
SM Prime eyes P18-B bond sale
SM Prime Holdings Inc. (SM Prime), one of Asia’s largest integrated property developers, is planning to raise P18 billion from a planned bond issuance to refinance maturing obligations and fund capital expenditures (capex).
1 mins
April 29, 2026
Manila Bulletin
Man charged with attempted assassination of Trump in White House correspondents' dinner shooting
The man who authorities say tried to storm the White House Correspondents' Association dinner with guns and knives was charged Monday with the attempted assassination of President Donald Trump as federal authorities suggested an attack that disrupted one of Washington's glitziest events had been planned for at least several weeks.
2 mins
April 29, 2026
Manila Bulletin
An endless summer state of mind
Rustan's transforms its Makati flagship into a coastal escape as it unveils 'Beneath the Riviera Sun' campaign
1 mins
April 29, 2026
Manila Bulletin
House panel to hold crucial vote on VP Sara impeachment case
After weeks of grueling deliberations, the House Committee on Justice is expected to vote whether or not there is probable cause in the two active impeachment complaints against Vice President Sara Duterte on Wednesday, April 29.
2 mins
April 29, 2026
Manila Bulletin
What is 'judicial notice' and how does it affect cases in courts?
The Supreme Court (SC) has reminded all courts in the country to take judicial notice of the official acts of the executive, legislative, and judicial branches of government in the resolution of cases that would affect the liberty of an accused.
2 mins
April 29, 2026
Manila Bulletin
PNP says sacked Negros police official had links with Atong Ang
The police major who was tagged as protector of online sabong (cockfighting) in the Visayas was sacked from his post, and is now under restrictive custody amid the ongoing investigation into the extent of the network of the illegal gambling activity, an official of the Criminal Investigation and Detection Group (CIDG) said.
1 mins
April 29, 2026
Manila Bulletin
Dela Rosa's camp weighing proposal to give up his salary, allowances
Amid numerous calls for him to temporarily stop receiving salary and allowances while he continues to absent himself from the Senate, the camp of Senator Ronald \"Bato\" Dela Rosa is now considering the suggestion that was originally put forward by Senate Ethics Committee Chairman Senator Joseph Victor \"JV\" Ejercito.
1 mins
April 29, 2026
Listen
Translate
Change font size