President Benigno S. Aquino III expressed elation over the move of the credit ratings agency Fitch Group granting the Philippines its first investment grade status.
"We are pleased to hear that this afternoon, the Fitch group announced that they upgraded the status of the Philippines from BB+ to BBB-. This marks the first time in history that our nation has been granted investment grade status by a major credit ratings agency," the Chief Executive said in a statement released on Wednesday.
The Philippines has finally won its much-coveted investment grade status from Fitch Group, one of the three major international credit rating agencies that assesses the government's ability to pay back its debt and the chance of non-payment.
"This means much more than lower interest rates on our debt and more investors buying our securities. Greater access to low-cost funds gives us more fiscal space to sustain and further improve on social protection, defense, and economic stimulus, among others," the President said.
President Aquino said more companies in the real economy can now consider the Philippines an investment destination after the Philippines got the investment grade status.
"Investment grade for sovereign debt should also lead to lower borrowing costs for Philippine companies in the international markets, consequently allowing for higher valuations for their securities. This in turn enables industries to expand and generate more jobs for our countrymen- fostering a virtuous cycle of growth, empowerment, and inclusiveness that will redound to the benefit of Filipinos across all sectors of society," the President stressed.
The President said the Philippine's investment grade rating from Fitch represents the perception of lessening risk in the country's markets.
"It formalizes the investment grade level at which the Philippines has already been securing credit. This is an institutional affirmation of our good governance agenda - Sound fiscal management and integrity-based leadership has led to a resurgent economy in the face of uncertainties in the global arena. It serves to encourage even greater interest and investments in our country," he said.
"It is one among many other positive developments that demonstrates the reclamation of our national pride. Truly, what was once known as the perennial laggard of Asia is taking off, and is accelerating towards its goal of an equitably progressive society," he noted.
The Philippines' economic growth, as measured by its gross domestic product (GDP), has been progressively growing despite the economic downturn in the global environment, expanding by 6.6 percent in 2012.
"The task now is to ensure that expected inflows will be used to maximum effect towards a sustainable, progressively empowering economy. We are determined to build on our economic gains to usher in a society wherein every Filipino, today and for generations to come, may be given the wherewithal to realize their full potential," President Aquino concluded.
27 March 2013
Office of the President of the Philippines