S\u00f6P affirms Philippines' BBB+ rating with stable outlook

S\u00e9nior debt watcher S\u00f6P Global Ratings affirmed the Philippines' investment-grade credit rating at BBB+ with a stable outlook on Thursday.

The affirmation is based on expectations of a healthy economic recovery and improvement in fiscal performance as the government contains COVID-19 infections.

S\u00f6P noted an expected acceleration in growth by 2022, contingent upon increased vaccination rates and pandemic containment.

BDO chief strategist Jonathan Ravelas forecasts further rise in the local bourse's main index towards 6,700/6,750 levels following this affirmation.

However, S\u00f6P warned that a faltering economic recovery over the next 24 months could lead to a downgrade and flagged rising debt risks as a downside risk.