Pangandaman welcomes S&P improved credit rating: Let’s be positive!

Department of Budget and Management (DBM) Secretary Amenah F. Pangandaman welcomed S&P Global’s raising of the Philippines’ credit outlook from ‘stable’ to ‘positive’ on November 26, 2024.

One of the leading global credit rating agencies, S&P also affirmed the Philippines' ‘BBB+’ long-term and 'A-2' short-term sovereign credit ratings, with the transfer and convertibility assessment remaining at 'A-'.

“ We believe the strengthening of the country's institutional settings, which had contributed to a significant enhancement in the sovereign's credit metrics over the past decade, will continue. This is demonstrated by the strong economic recovery in the last two years, and ongoing reforms to support business and investing conditions,” S&P said in its report, adding that the ratings may be raised “if the government achieves more rapid fiscal consolidation.”

On August 2024, Secretary Pangandaman called for a whole-of-government approach to achieving an ‘A’ credit rating following Moody's rating of ‘Baa2’ with a stable outlook and Japan's Rating and Investment Information Inc. (R&I) upgrade to "A-" with stable outlook.  

“I have always been confident that we can achieve an “A” rating for all credit rating agencies and now, with this latest upgrade from S&P, we are getting closer to achieving this dream,” Secretary Pangandaman said. 

The Budget Chief added that this is a testament to President Ferdinand R. Marcos Jr.’s strong leadership which, according to S&P, “ has delivered constructive development outcomes.”

The S&P Report likewise cited the “country’s solid economic outlook anchored by the government's infrastructure drive and pro-business policies.” For this year, infrastructure spending reached Php 1.143 trillion from January to September, increasing by 11.9 percent from the Php 1.021 trillion outturn in the same period last year. This is expected to contribute to reaching the 6.0 to 7.0 percent growth target for 2024.

Secretary Pangandaman also reiterated DBM’s commitment to implementing structural reforms, which will enable agencies to accelerate the utilization of their respective budget allocations and ultimately boost economic growth.

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