Outlook on Philippines' long-term rating positive: S&P Global Ratings

The ratings reflect the country's above-average economic growth potential. These also benefit from the country's strong external position.

Policy settings in the country have helped keep economic performance strong, and have sustained fiscal spending on public investment. A strong economic recovery in the Philippines over the past three years, and ongoing reforms to support business and investing conditions reflect these strengths, the rating agency said in a note.

A slowdown in public infrastructure investment in the Philippines is weighing on its near-term growth prospects. However, S&P Global Ratings believes this is temporary and economic growth prospects remain strong.

The government is continuing its fiscal consolidation, with its debt burden stabilising. The country's external position remains a rating strength, although current account deficits in recent years have decreased net external assets.

The positive rating outlook reflects the rating agency’s view that the Philippines will maintain its external strength and healthy growth rate, and fiscal performance will strengthen over the next 12-24 months.

ALCHEMPro News Desk (DS)