By Joann Villanueva/Philippine News Agency
MANILA — A road map detailing ways by which government can tackle governance and sustainability issues is necessary for an “A” level credit rating.
This was stressed by Bangko Sentral ng Pilipinas (BSP) Deputy Governor Diwa Guinigundo during government’s 2019 pre-SONA economic and infrastructure forum held at the Philippine International Convention Center (PICC) Monday.
He explained that the road map will help the economic managers come up with solutions to obstacles on good governance, cost of doing business and sustainability of reforms, among others.
“The consequent upgrade to a single A or a single A- start with a sterling A credit performance. To us it is an outcome, a consequence of the efforts to address those fundamental issues of governance, those issues of cost of doing business, sustainability of economic reforms etc.,” he added.
Last April, S&P Global Ratings upgraded its investment rating on the Philippines to ‘BBB+’, a notch away from A-rating, with stable outlook because of continued robust domestic expansion, healthy external position and sustainable public finances.
The upgrade was announced about a year after the debt rater changed its ratings outlook on the country’s then ‘BBB’ rating from Stable to Positive.
S&P, along with Fitch Ratings and Moody’s Investors Services, elevated the country’s credit ratings to investment grade since 2013 due to continued expansion of the economy.
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