S&P Global Ratings upgraded its long-term sovereign credit rating on the Philippines to BBB+ from BBB on the back of solid growth trajectory, a strong external position and sustainable public finances.
The outlook is stable.
The Philippines is growing at a faster pace than its peer countries due to supportive policies and improved investment climate, according to the rating agency. Additionally, the declining unemployment rate indicates a strengthening labor market. The agency estimates an average GDP-per-capita growth of around 4.9% from 2019 to 2022.
The country remains in a net external asset position with a manageable fiscal deficit. S&P Global Ratings estimates external liquidity needs to remain modest at 78.2% over 2019 to 2022.
The agency, which affirmed its A-2 short-term credit rating on the Philippines, expects the nation to continue achieving above-average real GDP growth in the medium term.
This S&P Global Market Intelligence news article may contain information about credit ratings issued by S&P Global Ratings. Descriptions in this news article were not prepared by S&P Global Ratings.