‘Dr Doom’ lauds PH credit upgrade

Aya Lowe

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Renowned economist Nouriel Roubini's prediction that the Philippines would achieve investment grade within the year has come true

IT CAME TRUE. Renowned economist Nouriel Roubini had told an SRO crowd of investors, bankers, corporate chiefs in a January 30 summit in Manila that the Philippines deserves an investment grade. Photo by Lala Rimando

MANILA, Philippines – Nouriel Roubini, a world renowned economist, praised the news that the Philippines has achieved an investment grade status, which he had predicted and supported. 

Dubbed Dr. Doom for predicting hard times before the financial crisis began in 2008, Roubini said on his Twitter account that the Fitch Ratings’ upgrade was “well deserved.”

He tweeted this:

Roubini teaches at New York University’s Stern School of Business and is the chairman of economic consultancy firm, Roubini Global Economics. He predicted that the Philippines would achieve an investment grade within the year in Davos, Switzerland in January.

In a tweet sent January 28 before coming to Manila, Roubini said: 


He nailed the message further in his Manila visit when he said in a keynote speech during the Philippine Investment Summit last January 30 that the Philippines deserves an investment grade in 2013.  

He also said in a Bloomberg interview that unlike the ‘hyped up’ BRIC nations, the Philippines, along with Indonesia were doing more to grow their economies.

The Philippines won its first ever investment grade debt rating from global credit rating firm Fitch on March 27.

The credit rating agency upgraded the Philippines’ sovereign credit rating to BBB- from BB+ marking the first time the country joins the A-lister countries considered safe to invest in.

Fitch cited a robust economy and improved fiscal management as the reason behind the upgrade.

“The Philippine economy has been resilient, expanding 6.6% in 2012 amid a weak global economic backdrop. Strong domestic demand drove this outturn,” Fitch said.

Fitch was the first among the other international credit rating firms — Standard & Poor’s (S&P) and Moody’s Investors Service — that granted the Philippines a long-awaited investment grade. S&P and Moody’s still rate the country one notch below investment grade. S&P currently rates the Philippines a BB+ market, while Moody’s gave it a Ba1. – Rappler.com

 

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