Purisima tells ratings agencies: PH is underrated
Posted at 02/21/2012
MANILA, Philippines - The Philippines deserves a second look on its credit rating, Finance Secretary Cesar V. Purisima told representatives of two ratings agencies in London.
Purisima had a meeting with representatives of Fitch Ratings and Moody’s Investors Service, where he updated them on Philippine economic developments.
"I met with them (Fitch and Moody’s) to continue our dialogue on the strength and resiliency of the Philippine economy, as well as to discuss our view that the Philippines continues to be underrated," he said, in a statement.
"The market has already recognized the Philippines’ resilience and the strength of our credit standing and is rating us as investment grade... In fact, our bond issuance in January marked the lowest USD coupon ever achieved by an Asian Sovereign for a bond with a tenor greater than ten years," Purisima said.
The credit rating agencies took note of the Philippine government's improving debt and revenue ratios. They were also encouraged by the Aquino administrations efforts to improve tax administration and push for sin taxes.
"The ratings agencies are very keen on our push for reforms in the sin taxes. A World Bank study estimates that we could gain as much as 1.3% of GDP in additional revenues from reforms in the sin taxes like uniform tax rates and indexation. Such an improvement in our tax base would definitely boost our drive towards investment grade," Purisima said.
"I met with them (Fitch and Moody’s) to continue our dialogue on the strength and resiliency of the Philippine economy, as well as to discuss our view that the Philippines continues to be underrated," he said, in a statement.
"The market has already recognized the Philippines’ resilience and the strength of our credit standing and is rating us as investment grade... In fact, our bond issuance in January marked the lowest USD coupon ever achieved by an Asian Sovereign for a bond with a tenor greater than ten years," Purisima said.
The credit rating agencies took note of the Philippine government's improving debt and revenue ratios. They were also encouraged by the Aquino administrations efforts to improve tax administration and push for sin taxes.
"The ratings agencies are very keen on our push for reforms in the sin taxes. A World Bank study estimates that we could gain as much as 1.3% of GDP in additional revenues from reforms in the sin taxes like uniform tax rates and indexation. Such an improvement in our tax base would definitely boost our drive towards investment grade," Purisima said.
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