PH deserves a Fitch upgrade – DTI chief
MANILA, Philippines – Convinced that the Philippines deserves a much higher credit rating, Trade Secretary Gregory Domingo said that he would seek clarification with London-based Fitch Ratings on its seeming reluctance to give the country another upgrade.
“In my own assessment, we have to be upgraded…in fact 3 notches higher,” Domingo said.
Fitch Ratings is the last of the 3 ratings agency that has yet to give the country a rating of two notches to investment-grade.
The sovereign credit rating gave the country BBB- from BB+.
Moody's Investors Service raised the Philippines' credit rating by one notch in December – another manifestation of the country's economic transformation.
In May 2014, S&P further upgraded the Philippines' credit rating by a notch above the minimum investment grade.
Domingo was scheduled to meet on Tuesday, February 3, with Fitch representatives to ask the nagging question.
“We will ask what is holding them back … and what we need to do to get upgraded,” he said.
The meeting is part of an annual assessment usually given by ratings agencies to track the Philippines’ progress.
“We have a good story [to tell],” said Domingo, referring to the stable growth rate achieved by the country as well as its ability to attract investments.
The Philippines posted a 6.1% growth in 2014, while short of the government's target of 6.5% to 7.5%, still the fastest in the Asia after China.
The Philippines is also likely to hit $6 billion in foreign direct investments in 2014 judging from the performance in the first 9 months of $5.3 billion, Domingo added. – Rappler.com