A plus factor for investors

WITH the recent announcement of S&P Global Ratings in the raising of the Philippines’ credit rating from BBB to BBB+, Davao City Chamber of Commerce, Inc. (DCCCII) said it can further lower cost local financing and can push both foreign direct and local investment.

On April 30, S&P Global upgraded the Philippines’s credit rating from “BBB” to “BBB+” with a “stable” outlook.

S&P said in its report that “The Philippines has above-average economic growth, a healthy external position, and sustainable public finance.”

DCCCII said the new rating is just a notch away from “A minus” rating which is considered “sterling territory”.

In an official statement, DCCCII president Arturo Milan welcomed the development and congratulated economic managers for their consistent efforts in improving our investment climate.

“This development is timely considering that we are entertaining more financing offers from different countries and banks, particularly European institutions,” Milan said.

“This will also push more investors to look at non-traditional areas of investment like Mindanao, which has received a lot of interest from foreign business groups,” he added.

Milan said the Davao Chamber has been receiving numerous visitors taking a look at Mindanao’s potential.

On June 20-21, DCCCII will host the 2019 Davao Investment Conference (DavCon) at the SMx Convention Center, SM Lanang, Davao City to further promote more investments in other cities in Mindanao, not only in Davao.

Milan said they are expecting hundreds of local and foreign businesspeople to participate. Among those who already confirmed their attendance are from Sarawak Business Federation from Malaysia with their Minister, some Chinese delegation, and Kitakyushu City and Hitachinaka of Japan.

Meanwhile, the Department of Finance (DOF)) said in a statement noted how the upgrade reflects the efforts of the Philippine government in terms of economic reforms and policies.

“The upgrade recognizes implementation of vital policy and infrastructure reforms seen to fuel robust, sustainable, and more inclusive economic growth for the Philippines. Major reforms include laws on tax reform, liberalization of the rice sector, and strengthening of the Bangko Sentral ng Pilipinas’ charter, as well as initiatives to increase the ease of doing business and relax the foreign investment negative list,” Deparment of Finance said in a statement.

For her part, National Treasurer Rosalia De Leon said, “The upgrade is a recognition of our sound policies on liability management. We have kept our debt in check—even as we invest more on infrastructure and social services. We are committed to fiscal discipline, and this makes the Philippines a truly creditworthy sovereign in the eyes of the international financial community.” (LHC with DOF PR)