S&P affirms Philippines' BBB+ rating with stable outlook

S\&P Global Ratings has affirmed the Philippines' 'BBB+' investment rating with a stable outlook, forecasting a strong economic recovery of 9 percent growth in 2021.

The affirmation is based on expectations that the economy will continue to achieve above-average growth over the medium term, driven by strong economic fundamentals and orthodox policymaking.

S\&P notes that while fiscal and debt metrics may deteriorate due to pandemic-related stimulus measures, the government's history of fiscal prudence provides a buffer for stabilization beginning in 2021.

Finance Secretary Carlos Dominguez III stated that S\&P's affirmation is an 'unequivocal recognition' of the economy's resilience, highlighting the government's PHP1.7 trillion four-pillar program to combat the pandemic and restart the economy.