PNoy admin sees global 'investment grade' rating by 2013

Philippine economic managers are aiming for an investment grade rating on the country’s sovereign debts by 2013, or mid-way through the Aquino administration’s term. “We hope to hit investment grade within the first half of the Aquino administration," Finance Secretary Cesar Purisima said Friday, a day after debt watcher Fitch Ratings’ Singapore unit gave the Philippines its first upgrade in eight years. Purisima said the upgrade is a “deserved" development considering positive sentiment investors gave Philippine bonds that were offered in the global and local debt markets. Fitch issued three assessments. For long-term foreign currency debt, the global rater gave a “BB+" or a notch over the previous “BB" rating and just a notch under investment grade. For long-term peso debt, the Philippines got a “BBB-" while Fitch retained the “B" for short-term foreign currency issuer default rating The new Fitch rating is the fourth upgrade the Aquino administration has received since assuming power on June 30, 2010. It followed the Moody’s Investor Service upgrade two weeks ago. Fitch also raised the issuer default ratings of the Bank of the Philippine Islands and the Development Bank of the Philippines. “With these upgrades, we can have better access to more affordable financing at better terms," Department of Budget and Management Secretary Florencio Abad said. “This would allow us to further reduce the burden of interest payments on national coffers and free-up funds for productive projects," Abad said. He also explained that the higher confidence in the country’s macroeconomic fundamentals draws in more direct investments. — ELR/VS, GMA News