Credit rating upgrade ‘nod to fiscal policy’-A A +A
Thursday, July 5, 2012
MANILA (Updated 11:32 a.m.) -- The Philippine government said Thursday that a credit rating upgrade by Standard & Poor's (S&Ps) will help the country carry out reforms without weakening its financial position.
The agency raised on Wednesday the Philippines' long-term foreign currency credit rating to BB+ from BB, one notch below investment grade. It kept the rating outlook at stable.
Presidential spokesman Ricky Carandang said that while some other countries are being forced to tighten belts to get high debt under control, the Philippines can still afford to undertake public spending without jeopardizing its overall financial position.
The upgrade propelled the Philippine peso to 41.72 versus the US dollar, the strongest in four years.
Carandang said the government doesn't want a strong peso to hinder competitiveness of exports. (AP)