Philippines wins first investment grade rating from Fitch

Fitch-RatingsFitch Ratings raised the Philippines’ credit rating to investment grade now. Philippines is a first for the Southeast Asian nation. The rating raised in order to promote investment and elevate the country’s long-term growth potential.

The upgrade to ‘BBB-‘ is a vote of confidence in the government’s efforts to achieve fiscal sustainability, curb corruption and increase infrastructure spending, and comes as a growing number of much larger economies in the West struggle to avoid credit rating downgrades.

Fitch said Manila has had stronger and less volatile growth than its peers over the last five years, and expects trend GDP growth of 5-5.5 percent in coming years.

The Philippine central bank has cleaned out its funds over the past year, spending billions of pesos to shield its currency and economy from the impact of large inflows of foreign money.

Investors have already been pricing Philippine bonds at levels similar to investment-grade nations. But by having it made official by Fitch, it will reduce the country’s borrowing costs and widen Manila’s base of potential investors.

Standard & Poor’s raised its rating outlook for the Philippines to positive from stable in December and said it could be awarded investment grade status if it follows through on reforms to improve revenues and boost growth.

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About thomasdinnocenzi

Thomas D’Innocenzi is a highly accomplished, results-focused international consultant with extensive experience in global sourcing and business development worldwide to meet evolving business needs. Tom has proven ability in implementing and managing profitable global marketing and sourcing operations. He has extensive experience in international business development to accommodate rapid growth. Skilled in building top-performing teams, bench-marking performance, and developing organizations to improve efficiency, productivity, and profitability. Experienced transition leader and change agent. Tom founded Nova Advisors with the mission of providing expert Global Business Development consulting services for companies seeking to expand their market share as an independent consultant. Tom has a network of experts and advisors throughout the Asia-Pacific region and North America. His expertise includes business development, global sourcing, manufacturing, commodities, logistics, QA/QC, FDA, regulatory compliance, sustainability, and supply chain optimization. Tom is experienced in the medical device, apparel, consumer goods and technology services verticals helping companies advance their global sourcing capabilities and develop new markets through a local and sustained approach. Located in SE Asia and the United States, Tom expands market reach to drive sales. His global sourcing strategy includes directly negotiating with commodity suppliers, supply chain networks and distributors for optimal terms based on his expertise and first-hand knowledge of the players. Contact Tom to use his consulting service to increase your global market and make global sourcing profitable for you in the Asia Pacific Region and the United States. http://www.NovaAdvisors.com thomas@NovaAdvisors.com USA Direct: +1.904.479.3600 SINGAPORE: +65.6818.6396 THAILAND: +662.207.9269
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