Basahin sa Filipino

Last April 24, 2015, Standard & Poor’s Financial Services (S&P) reaffirmed the BBB Stable long-term sovereign credit rating of the Philippines, the highest rating ever recorded in the country’s history. This set the country’s credit rating a notch higher than the minimum investment grade status granted to it by S&P on May 2, 2013, making the Philippines more internationally competitive and attractive to investments.    

A BBB Stable credit rating for the country means the Philippines has an adequate capacity to pay its debts fully and on time. “Stable” means the rating has a “stable outlook”; it is likely not to change within a year. This credit rating is also projected to be sustained and further upgraded in the coming months, as a result of the stable economic progress due to the reforms the country experiences thus far. This grade gives the Philippines a good financial reputation to potential foreign investors for 2015 and the years to come.   

Aside from S&P, Fitch Ratings (Fitch) and Moody’s Investors Service (Moody’s) are also two of the major credit rating agencies in the world. Fitch granted a BBB- Positive Investment Grade rating last September 24, 2015 while Moody’s granted the Philippines a Baa2 Stable Investment Grade rating last December 14, 2015.

Current Credit Ratings under the Aquino Administration

Date Rated CREDIT AGENCY RATING
2015 Apr 24 Standard & Poor’s BBB STABLE
2015 Dec 14 Moody’s Baa2 STABLE
2015 Sep 24 Fitch BBB- POSITIVE

Credit Ratings Interpretation

S&P Fitch Moody’s Interpretation
AAA AAA Aaa Highest quality (with minimal credit risk)
AA+

AA

AA-

AA+

AA

AA-

Aa1

Aa2

Aa3

High quality (subject to very low credit risk)
A+

A

A-

A+

A

A-

A1

A2

A3

Upper-medium grade (with low credit risk and strong payment capacity)
BBB+

BBB

BBB-

BBB+

BBB

BBB-

Baa1

Baa2

Baa3

Investment grade (subject to moderate credit risk and with adequate payment capacity)
BB+

BB

BB-

BB+

BB

BB-

Ba1

Ba2

Ba3

Less vulnerable to non-payment (default) but with ongoing uncertainty (subject to substantial credit risk)
B+

B

B-

B+

B

B-

B1

B2

B3

More vulnerable to non-payment (with high credit risk)
CCC+

CCC

CCC-

CCC+

CCC

CCC-

Caa1

Caa2

Caa3

Currently vulnerable to default (subject to very high credit risk)
CCC C Ca Highly speculative (likely in or very near default, with some prospect of recovery of principal or interest)
D D C Typically in bankruptcy or in default

Sources: Standard and Poor’s, Moody’s, and Fitch.

Updates

PH secures another credit rating upgrade

NICE upgraded the country’s credit rating by a notch from the minimum investment grade of BBB- to BBB.


2015 Year Ender: Credit ratings

Noong 2013, nakatanggap ang Pilipinas ng investment grade status mula sa tatlong pangunahing credit rating agencies sa kauna-unahang pagkakataon. At patuloy ang mga upgrade na ito—ginagawang higit na kaakit-akit ang Pilipinas sa kapwa domestiko at dayuhang mamumuhunan. Noong 2014, umabot sa $6.2 bilyon ang net foreign direct investments, mula $1.07 bilyon noong 2010, habang ang […]


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President Aquino at the 2015 FOCAP Presidential Forum

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Statement of Deputy Presidential Spokesperson Abigail Valte on the week of September 28-October 2, 2015

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Just a few days ago, Fitch Ratings improved its outlook for the Philippines: from stable to positive, citing better governance under the Aquino administration as well as our solid fundamentals.


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Statement: Presidential Spokesperson Edwin Lacierda on a credit rating upgrade from the Japan Credit Rating Agency (JCRA)

We are pleased to announce that the Philippines has received a credit rating upgrade from the Japan Credit Rating Agency (JCRA): from BBB- to BBB+ stable.


Infographic: The Philippines 2014, in brief

Tuloy ang tiwala, tuloy ang laban, tuloy ang transpormasyon ng lipunan