Upturn in global economy to boost PHL performance - S&P

Credit-rating firm Standard & Poor’s said favorable developments in the global economy could boost the performance of the Philippines and its neighbors. The developments include gradually improving economic conditions in the United States and the euro zone, projections that the Chinese economy will not slow down as much as previously expected, and that Japan may recover from its own economic troubles. Developments in the United States, euro zone, China, and Japan—which serve as key export markets— significantly impact on the Philippines and other emerging Asian markets. In its latest reports titled “Asia Pacific Sovereigns: A Break in the Clouds”, S&P said, “For the Asia-Pacific region, which has endured half a decade of leaden skies hanging over the global economy, some rays of sunshine could burst through 2013.” S&P currently assigns a rating of BB+ to the Philippines, which is one notch below investment grade. Late last year, the credit-rating firm revised its outlook on the country’s rating from “stable” to “positive.” The latter indicates potential upgrade in the credit rating should favorable trends be sustained. An investment grade rating would help the Philippines attract more foreign, direct investments. — DVM, GMA News