Standard and Poor’s (S&P) Global Ratings, the analytics unit of the sovereign credit watcher that first gave the Philippines an investment grade for its IOU nearly five years earlier, has upgraded the country’s rating anew on Tuesday.
The S&P in a statement said the country’s above-average economic growth, healthy external position and sustainable public finances were the factors that brought on the improved assessment.
“We are raising our long-term sovereign credit rating on the Philippines to BBB+. At the same time, we are affirming our A-2 short-term credit rating on the Philippines,” the debt watcher said.
“We also revised the transfer and convertibility assessment higher to A- from BBB+,” it added.
According to S&P, the decision to raise the country’s rating reflects their assumption of sustained above-average real gross domestic product growth over the medium-term, supporting the sovereign’s credit profile.
The new rating translates to two notches above the minimum investment grade and affirms earlier expectations of an improved credit rating for the Philippines.
Earlier, Finance Undersecretary Gil Beltran forecast a credit rating upgrade for the country within a 12-month period.