PHP deserves credit rating upgrade, says Tetangco

With the government under the administration of Presdient Aquino reaping fiscal and monetary achievements, credit rating must now upgrade the stature and worthiness of the Philippines, Bangko Sentral ng Pilipinas (BSP) Gov. Amando Tetangco Jr. said this weekend. The country’s economic indicators have been improving while more advanced economies have succumbed to the recent global financial crisis, Tetangco said. “We deserve an upgrade given our overall performance. The indicators that are supposed to go up went up and those that were supposed to go down went down," he said in an interview with reporters. For instance, the government made a budgetary shortfall of only P259.8 billion or P13.9 billion lower than the program in the first nine months, Tetangco said, pointing out that this upbeat performance has increased the government’s capacity to prepay some of its overseas obligations. Prepaying the public sector’s foreign obligations is something that could be done at present as both domestic and global financial environment favors such a move, said BSP Deputy Gov. Diwa Guinigundo. “The cost of money is at historical lows, and in terms of the window of opportunity. Why not do it today?" Guinidundo said, pertaining to the cost of obtaining a loan where the interest rates are at their record lows. Tetangco pointed out that the domestic inflation is “benign," resulting in lower food inflation. Major food groups posted lower averages as domestic food supply continues to recover from last year’s devastation, he said. The Philippines has never been rated a triple “B" economy. Global credit watchers such as Standard & Poor’s, Moody’s Investor Service, and Fitch Ratings consistently considered the country’s economic performance a notch lower. — JE VS, GMANews.TV