Manila (Philippine Daily Inquirer/ANN) - The Central bank of the Philippines (BSP) expects two more credit rating upgrades for the Philippines in 2011, citing macroeconomic conditions which will likely improve further and enhance the country's credit worthiness.
BSP Deputy Governor Diwa Guinigundo said Moody's Investors Service and Fitch Ratings would likely follow the lead of Standard & Poor's, which raised the country's credit score in November.
S&P decided to raise the country's long-term foreign-currency debt rating by a notch, or from BB- to BB, citing the continuing improvement of the country's external liquidity. The new rating is two notches below investment grade.
The Philippines' growing foreign currency reserves, which stood at an all-time high of $61.3 billion as of end-November, would enable the country to meet its debt obligations with foreign creditors, S&P said.
"Upgrade is a recognition of what we have so far accomplished, especially throughout the global crisis," Guinigundo said.
But the government's budget deficit continues to be a key obstacle, preventing the country from firmly securing a ratings upgrade.
