(PAGASA 24-HOUR PUBLIC WEATHER FORECAST as of Saturday, 22 June 2024) Southwest Monsoon affecting the western sections of Southern Luzon and Visayas. 𝗙𝗒π—₯π—˜π—–π—”π—¦π—§ π—ͺπ—˜π—”π—§π—›π—˜π—₯ π—–π—’π—‘π——π—œπ—§π—œπ—’π—‘: Butuan City, Agusan del Norte, Agusan del Sur, Dinagat Islands, Surigao del Norte and Surigao del Sur will experience partly cloudy to cloudy skies with isolated rainshowers or thunderstorms due to Localized Thunderstorms. Possible flash floods or landslides during severe thunderstorms. 𝗙𝗒π—₯π—˜π—–π—”π—¦π—§ π—ͺπ—œπ—‘π—— 𝗔𝗑𝗗 π—–π—’π—”π—¦π—§π—”π—Ÿ π—ͺπ—”π—§π—˜π—₯ π—–π—’π—‘π——π—œπ—§π—œπ—’π—‘: Light to moderate winds coming from Southeast to South will prevail with slight to moderate seas (0.6 to 2.1 meters).

Tuesday, 23 May 2023

DBM welcomes Ph improved outlook to stable, “BBB’ credit rating 

The Department of Budget and Management (DBM) welcomes the report of global credit ratings agency Fitch, which upgraded its outlook on the Philippines from “negative” to “stable,” and gave the country a good “BBB” credit rating, published on 22 May 2023.

This improved outlook signals the country’s creditworthiness and allows it to access funding from development partners and international capital markets at lower cost. This means that the Philippine credit conditions have already started to firm up its trajectory towards reducing its borrowing cost and likewise lowering its debt burden as percent of Gross Domestic Product (GDP).

A rating of “BBB” is above the minimum investment grade and indicates the risks of default are low. It is also a vote of confidence on the country’s ability to fulfill its financial commitments.

“Fitch’s improved outlook is a welcome development leading to the attainment of our fiscal consolidation goals and the achievement of more fiscal space for the government’s priority agenda and projects,” DBM Secretary Amenah F. Pangandaman said.

"This development indicates that the country's growth now stabilizes with continuous strong economic activities, and that we are determined to achieve a steady improvement in our growth guided by our Medium-Term Fiscal Framework," Sec. Pangandaman added.

The revision of the Outlook to Stable reflects Fitch’s improved confidence that the Philippines is returning to strong medium-term growth after the Covid-19 pandemic, supporting sustained reductions in government debt/GDP, after substantial increases in recent years. The report also said that the revision reflects Fitch's assessment that the Philippines’ economic policy framework remains sound and in line with ‘BBB’ peers.

“Fiscal conditions are already improving, leading to reduced government borrowing costs. In short, fiscal consolidation is already taking place at this point, early in the first year of President Ferdinand R. Marcos Jr.’s administration. We will continue to sustain our country’s productivity, consistent with our Medium-Term Fiscal Framework,” the secretary said.

Based on their published Outlook, Fitch stated: “We expect the general government (GG) deficit to narrow to 2.8% of GDP in 2023 and 2024, from an estimated 3.3% of GDP in 2022 and 4.6% of GDP in 2021. This is consistent with a narrowing of the budgetary central government (CG) deficit to 5.7% of GDP by 2024, from 7.3% of GDP in 2022 and 8.6% of GDP in 2021. The gradual pace of consolidation reflects the authorities’ focus on fostering economic growth and development." (DBM/PIA Caraga)