MANILA -- More foreign investments are expected to flow into the Philippine economy as a result of the recent upgrade of its investment grade credit rating.
Philippine National Bank (PNB) President and CEO Jose Arnulfo A. Veloso said the country’s credit rating upgrade by S&P Global Ratings to ‘BBB+’, a notch away from A rating, with Stable outlook “is very positive for the Philippines.”
“It will open the floodgates for more investments in the country,” he told the Philippine News Agency (PNA) in an interview Wednesday.
S&P Global Ratings attributed the ratings upgrade to strong external payments position, robust domestic growth and sustainable public finances.
Veloso said the ratings upgrade is expected to help boost further the economy’s expansion since the expected rise of investments will result to other areas like job creation.
He said that for one, entities engaged in infrastructure developments will have more access to financing “because investors who are limited to a very specific credit ratings will have access to these issuers.”
“Because of that we are more optimistic that growth numbers will become better and there’ll be more opportunities for employment and the economy will continue to see high digit growth,” he said.
The country was elevated to investment grade in 2013 and has continuously been upgraded since then.
Veloso is optimistic that this will continue due in part to the positive demographics.
“I’m optimistic as long as the country continues to have very good policies and, at the end of the day, we have very good demographics to sustain it,” he added. (PNA)
