PH ranked lowest in global insolvency review by S&P

The Philippines received the lowest score in a global insolvency review by S&P Global Ratings, indicating weak creditor protections and unpredictable outcomes in corporate rehabilitation and bankruptcy.

S&P classified the Philippines as a Group C jurisdiction, citing a weak legal framework for creditors and high rule-of-law risk.

This classification pertains to the effectiveness of a country's insolvency laws in protecting lenders and investors when companies fail to meet their financial obligations.

The S&P assessment highlights that creditors in the Philippines often face uncertainty regarding the amount they can recover in cases of borrower default.

The rating agency also pointed to limited real-world evidence suggesting consistent implementation of the Financial Rehabilitation and Insolvency Act of 2010.