Debt watcher S&P Global Ratings kept the Philippines’ investment grade rating, citing emerging signs of economic recovery that could ease the strain on the government’s balance sheet that’s tarnished by the pandemic.
In a statement on Thursday, S&P affirmed the sovereign’s triple B plus rating while assigning a “stable” outlook, which means there is unlikely to be any changes in its assessment over the next 18-24 months.
S&P explained, “We affirmed the ratings because we believe the Philippines will continue to have good economic recovery prospects once the COVID-19 pandemic is contained, and that the government’s fiscal performance will strengthen accordingly.”
It added, “The Philippines’ economy is beginning to recover, and growth should accelerate further in 2022 as the pace of COVID-19 vaccinations picks up and the pandemic becomes more contained.”
The action followed a similar move from Fitch Ratings last January.