BDO chief market strategist Jonathan Ravelas (File photo)
MANILA – The latest affirmation by Rating and Investment Information Inc. (R&I) of its BBB+ rating with a stable outlook on the Philippines is a plus on the government’s borrowing plans, an economist said.
“The rating affirmation boosts (the) government’s confidence to continue its borrowing plan. It supports and confirms our economic managers’ decision and actions,” BDO chief market strategist Jonathan Ravelas said in a reply to a Viber message from the Philippine News Agency.
On Thursday, the Japanese debt rater cited the importance of the Philippine government’s fiscal and monetary actions in providing a positive view of the economy’s post-pandemic situation.
“The Philippines economy suffered a severe contraction due to the Covid-19 (coronavirus disease 2019) pandemic in 2020 but is expected to recover primarily through aggressive public investment, which had driven the economy in the past several years. Fiscal and monetary policies will boost growth for some time,” it said.
The latest rating action on the country was announced on the same day when the government successfully issued EUR2.1 billion multi-tenor global bond.
Asked when the ideal period for the government’s next foreign debt offering is, Ravelas said “now is the best time” for the government to do a US dollar-denominated bond offering because yield of the 10-year US Treasury has declined from a high of 1.79 percent to around 1.55 percent to 1.56 percent.
“It’s nice to be prepared for any contingencies amid the lingering challenges of the health crisis,” he added. (PNA)
