S&P's ratings on PHL not affected by election results

May 11, 2016 3:57 am 

By Joann Santiago

MANILA, May 10 (PNA) – – Standard & Poor's Global Ratings on Tuesday said its ratings on the Philippines are not affected by the results of the May 9 national polls.

"We expect fiscal and economic policies under the incoming administration to remain supportive of the 'BBB' long-term rating on the Philippines (BBB/Stable/A-2; axA/axA-2)," it said.

Partial and unofficial vote counts by the Commission on Elections (COMELEC) show Davao City Mayor Rodrigo Duterte leading the presidential race.

S&P noted that Duterte vowed to fight crimes and push for Constitutional reforms.

"However, he has given few details regarding the shape of economic policies to come under his presidency," it said.

Despite the lack of clear economic policies, S&P expects the incoming government "to continue with policies that had contributed to sovereign rating improvements in the past few years."

It noted that "Duterte's track record of more than 20 years in Davao gives few indications that he would embark on economic policies significantly different from theArroyo and Aquino administrations."

"Consequently, we believe the new administration will maintain fiscal policy to keep fiscal deficits to low single digits. Policies affecting businesses arealso likely to be supportive of continued investment growth," it said.

"In the near term, however, businesses in the country may be more cautious about expanding given the uncertainties over the new government's policy orientation," it said.

The debt rater added that its ratings on the country can be changed only by a rating committee. (PNA)

RMA/JSV/EDS

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