MikeLigalig.com

By Joann Santiago

Finance Secretary Cesar Pursima attributed to the Aquino administration’s good governance policy the continued improvement in the Philippines credit rating.

On Monday, Moody’s Investors Service upgraded to a notch below investment grade at “Ba1” with ‘stable’ outlook the country’ credit rating due to continued improvement in economic and fiscal performance amid negative global economic developments, better medium term economic prospects, and stable financial system.

This is the ninth positive ratings action on the country since President Benigno Aquino III took office in June 2010.

To date, all three major credit rating agencies namely Moody’s, Standard & Poor’s (S&P) and Fitch Ratings rate the economy a notch below investment grade.

“President Aquino reversed a decade’s worth of credit rating decline after a little more than two years of serving in office. This just shows how good governance can bring about good economics,” Purisima said.

The Finance department chief also cited that because of the reforms being implemented by the Aquino administration “the Philippines continues to be a strong performer in the current global economic climate.”

Among the positive results of these reforms is the 6.1 percent output of the domestic economy in the first half this year, a growth that is slightly above the government’s five to six percent target for the year and among the top in the region.

Also, revenue collections of the government continue to improve with the first nine months’ collection up 10 percent year-on-year to P1.12 trillion over year-ago’s P1.02 trillion.

Similarly, the country’s foreign reserves as of last August totalled to US$ 80.8 billion, already ahead of the US$ 77.5-78 billion target for this year, due to large contribution of inflows from Filipinos overseas and the business process outsourcing industry

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