Rating agency Standard and Poor has raised the Philippine long term debt rating to BB+ from BB. This is the highest rating since 2003. At a time when many countries are receiving lower ratings no doubt President Benigno Aquino is quite happy. In time Aquino hopes the rating will go up one more notch to investment grade.
A Singapore based S and P analyst said::“The rating action also reflects the country’s strengthening external position, with remittances and an expanding service export sector continuing to drive current- account surpluses.” Aquino intends to spend 16 billion U.S. on roads, bridges, and airports this year so the investment upgrade will help lower borrowing costs.
The Philippine peso has been strengthening against the U.S. doing the best of 11 major Asian currencies.Moody's has also rated Philippines positively in May. The Philippine economy grew 6.4 per cent in the first quarter of this year. Aquino wants to speed up growth to as much as 8 per cent year to help decrease poverty. For more see this article.