Philippines is now Investment Grade

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The Philippines is Now Investment Grade

March 27, 2013

  • The Philippines got its first ever investment grade debt rating from global credit rating firm Fitch.
  • Fitch upgraded the Philippines sovereign credit rating to BBB- from BB+
  • An investment grade rating tells investors it is safe to do business in the country and encourages them to put huge capital in the country.
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Why It Happened:
  • Among its Asian counterparts, Philippines is one of the fastest growing economies in the region in 2012.
  • A growing current account surplus reinforced by resilient growth in OFW remittances and BPO receipts.
  • Better economic conditions in general.
What Happens Now:
  • Investment grade status will attract more foreign funds into financial markets.  
  • A credit rating upgrade from other agencies like S&P and Moody's is expected in the 2nd half of this year.
  • Government will have an easier time attracting investments in the country.
  • Further reduction in borrowing cost for major Philippine companies.
  • Lower SDA (Special Deposit Account) rates
  • Pressure on the Peso (Higher value, meaning lower dollar to peso conversion rate)

BPI ASSET MANAGEMENT's CALL

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  • Local Equities Market is expected to continue its rally in 2013.
  • BPI Asset Management revised their year end PSEi forecast from 7,100 to 7,200 due to expected foreign fund in flows.

COL Financial Model Portfolio
Here's the stock buying guide from COL Financial (formerly Citiseconline).  They've added MWC back into their portfolio in the latest update.

Click to view larger version.


Sources:
www.rappler.com
www.bpiassetmanagement.com
www.colfinancial.com


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4 comments:

  1. This comment has been removed by a blog administrator.

    on April 13, 2013 at 6:25 PM  


  2. Vic said,

    It's a good news! Now the Philippines can attract more foreign investors to invest in our country and create more jobs for Filipinos.

    on April 23, 2013 at 1:40 AM  


  3. Good news indeed Vic.
    And the PSEi has just surpassed the 7000 level.

    on April 23, 2013 at 9:07 AM  


  4. This comment has been removed by a blog administrator.

    on May 24, 2013 at 7:25 PM