...the Asia's outperformers

PH among ‘outperformers’ in Asia, says Moody’s

By Paolo G. Montecillo
Philippine Daily Inquirer

Friday, July 19th, 2013

 

 

The Philippines has once again been recognized as one of Asia-Pacific’s expected outperformers, amid weak demand from the United States and Europe that has dragged down the export-driven economies of other countries in the region.

In a new report, rating firm Moody’s Investor Service said the Asia-Pacific region remained stable, despite global headwinds caused by slowing growth in China and a tepid recovery in the US.

“Global market volatility over the past few weeks has adversely impacted asset markets across Asia Pacific in a swift and undifferentiated manner,” Moody’s said.

Moody’s warned that while foreign investments may return to the region following the recent pullout, “capital inflows will likely return with an eye towards risk-adjusted returns in contrast to the indiscriminate search for yield that characterized inflows in recent years.”

Unlike the rest of the region, however, a few countries, including the Philippines, are expected to be more attractive investment destinations given their proven resilience in the face of difficulties abroad.

“Indonesia and the Philippines have featured the biggest improvements in terms of their percentile ranking,” the rating firm’s Sovereign Mid-Year Update said.

“High economic growth, narrow fiscal deficits, and exchange rate appreciation have combined to lead to debt consolidation in both countries and have contributed to the upward trajectory in their ratings,” Moody’s said.

The report noted that the Philippines was one of the few countries that were able to reduce levels of government debt despite the global slowdown that started in 2009. This came as other countries accumulated debt to fund stimulus efforts during the crisis.

Moody’s said between 2007 and 2013, the Philippines’ level of government debt fell by 4.9 percent in relation to its proportion to gross domestic product (GDP). This was lower than the 10.8-percent decline in Indonesia, but higher than the 4.8 percent posted by India.

Amid the Philippines improved performance, Moody’s once again hinted at a possible upgrade of the country’s sovereign credit rating.

Rating firms Standard & Poor’s and Fitch Ratings already rate the Philippines at investment grade, while Moody’s still rates the country one notch lower.

A country’s sovereign rating is a reflection of the condition of its economy since it indicates the national government’s ability to repay its obligations.

“The positive outlook for the Philippines is unique globally, while those for Hong Kong, Mongolia, and Singapore have been revised to negative this year,” the Moody’s report read.

...the PHL banks

PHL banks stand out for having positive outlook — Moody's

GMA News

July 18, 2013

 

 

The Philippines, however, is “unique among Moody's system globally” for having a positive outlook, which means that the system can be upgraded. 

 

 

The credit outlook for the Asia Pacific region remains stable despite perceived global economic slowdown and volatility in financial markets, with Philippine banks standing out as exceptional, debt-watcher Moody's Investors Service said Thursday.

“Looking ahead, sovereign ratings in the region are likely to withstand the effects of the moderation in global demand and the volatility in global capital markets,” Moody's said in its special report, “Asia-Pacific 2013 Sovereign Mid-Year Update: Broad Regional Stability Amid Continuing External Volatility.”

Specifically, outlooks for banking systems are stable in nine out of 15 rated systems in the Asia-Pacific.

The Philippines, however, is “unique among Moody's system globally” for having a positive outlook, which means that the system can be upgraded.

Hong Kong, Mongolia, and Singapore have been revised to negative this year.

“Although we do not expect banking system stress to materially affect sovereign creditworthiness in these countries, there continue to be important channels of transmission,” Moody's said.

Moody's sees governments “running relatively tight fiscal policies, or continuing with gradual fiscal consolidation.”

Last year, Moody’s upgraded the issue ratings for the Bangko Sentral ng Pilipinas' debts to Ba1 or one notch below investment grade from Ba2 with a stable outlook.

It also upgraded the foreign and local currency long-term bond ratings of the Philippines to Ba1 from Ba2 with a stable outlook.

Moody's cited as one of the reasons for the stable financial system is that it posed limited contingent risks and provided a stable source of financing for the government.

A higher credit rating allows banks and governments to borrow for less.

The debt watcher noted that the region's debt as a percentage of its output is expected move up only slightly, averaging 49 percent for the 2011 to 2014 period from 47 percent in the pre-2008 financial crisis.

“Overall, Indonesia and the Philippines have featured the biggest improvements in terms of their percentile ranking,” Moody’s said.

“High economic growth, narrow fiscal deficits, and exchange rate appreciation have combined to lead to debt consolidation in both countries and have contributed to the upward trajectory in their ratings,” it added. — SOA/BM, GMA News

 

 

...the Apprentice Asia finalist

Pinoy in Top 2 of 'Apprentice Asia'

 

ABS-CBNnews.com

07/18/2013

 

 

Jonathan Allen Yabut is one of the two finalists in "The Apprentice Asia." Photo: Handout

MANILA – Jonathan Allen Yabut, a senior product manager of a pharmaceutical company in the Philippines, is only a step away from becoming the first winner of the reality series “The Apprentice Asia.”

Yabut made it to the Top 2 of the regional adaptation of the popular US series, along with lawyer Andrea Loh Ern-Yu of Singapore.

In a two-part finale which will be aired on the cable channel AXN at 9 p.m. on July 24 and 31, AirAsia’s Tony Fernandes will decide who between the two candidates will become his first “apprentice.”




Yabut is one of the two Filipinos who competed in “The Apprentice Asia.” The other is Celina Le Neindre, a food and beverage consultant, who only made it to the final six in the competition.

A University of the Philippines graduate, Yabut said he has been a fan of “The Apprentice” ever since he was in college.

“I was jumping up and down! Sabi ko sa brothers ko, ‘it’s here, may ‘Apprentice Asia!’ I was telling the other contestants [that] if there was a fan club in Asia, I think I would vie for the president. I really watched everything. Like I’ve watched ‘Apprentice US, Spain, Italy, Australia, Ireland, you have it. And I think it’s a good way to prepare because you know how the tasks are done and you’re psychologically and mentally prepared,” he told ABS-CBNnews.com and other members of the media during the premiere screening of “The Apprentice Asia” last May.

Yabut, 27, said he did not feel the pressure of competing with older and more experienced players.

“I didn’t feel it (pressure) at all. There were both immature and mature people in the show. And since you’re from different backgrounds, you really tend to compromise. So I think the age didn’t really matter at all. You wouldn’t even know what the ages of the people are until you ask,” he said of his fellow competitors, which included a business owner, a financial coach and an auditor, among others.
He ended by saying that he hopes to show the rest of the world that Filipinos can do well, particularly in terms of sales and marketing.

“If you watch other ‘Apprentice’ shows or other seasons, it’s all about marketing and sales. So I felt something and I want to prove that the Pinoy can really do well,” Yabut said.