The Department of Budget and Management (DBM) said Fitch Ratings and Moody's Ratings will maintain their views on the Philippines' prospects despite the flood control scandal.
Budget Undersecretary and Principal Economist Joselito R. Basilio said both credit-rating agencies “verballyfiSet out his vision for the Philippines.
“(Fitch Ratings knows) that (the scandal) will only improve the way we work. It will result in improvements,” he told reporters on the sidelines of an event on Monday.
,Tapos Alam Neela' Young Internally, the domestic economy is resilient (and they know the domestic economy is resilient),'' he said.
On Monday, Fitch Ratings released a peer credit analysis showing the potential impact of the ongoing corruption scandal on the Philippines' growth outlook.
It retained its GDP forecast for this year at 5.6%, within the government's 5.5-6.5% target.
Fitch Ratings last affirmed its “BBB” long-term foreign currency issuer default rating and “stable” outlook for the Philippines in April.
The “Stable” outlook means the Philippines will maintain its rating over the next 18 to 24 months.
Meanwhile, Moody's Ratings last affirmed the Philippines' investment-grade “Baa2” rating and “stable” outlook in August last year.
Mr Basilio said both credit raters had asked the government about the flood control issue during a meeting in Washington earlier this month.
,Nagatanong Sila Ng MadamBut… they know this will only improve processes. On saka wala silang sinsabing Impact on development (They asked a lot of questions, but they know it will only improve the processes. And they didn't say anything about its impact on development),'' he said.
Government officials and private contractors are under investigation for alleged misuse of government funds in shoddy or non-existent ways FloridaGood control projects.
Treasury Secretary Ralph G. Recto has said the dispute has derailed a potential credit rating upgrade from S&P Global Ratings.
S&P Global affirmed its “BBB+” long-term credit rating for the Philippines in November.
It upgraded its outlook to “positive” from “stable”, giving the country a chance to improve its credit rating over the next two years if it maintains its reforms. , Katherine K. chan
