S&P raises Philippine rating<\/p>\n
MANILA (AFP): U.S. credit rating agency Standard and Poor's
\nFriday raised the Philippines' sovereign long-term foreign
\ncurrency debt rating to "BB plus," from "BB," and said the
\noutlook was positive.<\/p>\n
The upgrade, which covers US$4.4 billion of sovereign
\nobligations, reflects improvements in public finances, a rapidly
\ndiminishing foreign debt burden, and increasingly favorable
\nprospects for output and exports, the agency said in a statement.<\/p>\n
Two of the country's largest firms -- Philippine Long Distance
\nTelephone Co. (PLDT) and the state-run National Power Corp. (NPC)
\n-- also clinched long-term foreign currency debt upgrades both
\nfrom "BB" to "BB plus" as a result of the improved Philippine
\nsovereign rating.<\/p>\n
Standard and Poor's said the Philippines' sovereign ratings
\n"remain constrained by the challenge of broadening the public
\nsector's revenue base," and that further upgrades were contingent
\non the passage in Congress of the remaining portions of a
\ncomprehensive tax reform package.<\/p>\n
Aides of President Fidel Ramos, who wants the country to
\nobtain an investment-grade rating before his term ends on June
\n30, 1998, said earlier this week that Congress aimed to pass
\nthese components by May 1.<\/p>\n
They include the simplification of the individual income tax
\nstructure and amendments to the corporate tax which would plug
\nloopholes blamed for low collection rates.
\nThe sovereign peso-denominated debts of about 10.7 billion
\ndollars also received an upgrade to "A minus" long term and "A-1"
\nshort term from "BBB plus" and "A-2" respectively, the US agency
\nsaid.<\/p>\n
The Central Bank of the Philippines' long-term, foreign
\ncurrency and local currency credit rating were also raised to "BB
\nplus" and "A minus," respectively, in accordance with the
\nsovereign upgrade.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/sp-raises-philippine-rating-1447893297",
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