MANILA – Trade secretary Ramon Lopez on Sunday said the Philippines’ long-term sovereign credit rating of “BBB+” by S&P will help build investor confidence in the country.
“May repleksiyon naman ‘yun sa interest rate ng ipapautang sa atin. Bumababa ang interest rate na papautang ng mga foreign institution whether sa government or sa mga private corporations na nasa bansang ito,” Lopez said in an interview on Super Radyo dzBB.
“Magandang credit rating ng RP mabuti rin sa mga negosyante dahil kung magpo-foreign funding sila magiging mas mababa ang interest rate nila kumpara sa dati,” he added.
“Ang panalo dito ay Pilipinas at mga Filipino. Ayos na ayos ito,” the Trade secretary said.
S&P Global Ratings last Tuesday raised its sovereign long-term credit rating for the Philippines given the country’s “above-average” economic growth, but flagged that rationalizing incentives could have a downside risk for foreign investments.
In a statement, the global credit watcher raised the long-term sovereign credit rating on the Philippines to “BBB+”, two notches above the minimum investment grade.
Prior to this, the Philippines was rated “BBB” or a notch above the minimum investment grade, since April 2018. (GMA News)