credit ratings upgrade

What a credit ratings upgrade means for the Philippines

Imagine your parents paying P10,000 monthly amortization to a lender for a housing loan. Let’s assume that they have been paying religiously and on time during the entire duration of the loan. On the final year of payment, the lender decided to give them a bonus, reducing the amortization to P8,000 per month as a form of goodwill.

The extra cash can now be used by your parents to put more food on the table, to pay for housing repairs and maintenance, or even to increase your weekly allowance. Regardless of where it will be put to use, the savings from the loan reduction will surely benefit your family.

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(S&P upgrade) Philippines gets 2nd investment grade rating

Just a month after the Philippines received its first-ever investment grade rating from Fitch Ratings, another credit rating agency gave the country its stamp of approval by bestowing upon the Philippines a BBB- rating, equivalent to a lower medium investment grade.

Standard & Poor’s (S&P), one of the top three credit rating agencies in the world, upgraded the Philippines’ long-term foreign currency- denominated debt from BB+ to BBB-, with a stable outlook. (See definitions of the credit ratings in the article “Moody’s, Fitch, and S&P and what their credit ratings mean“)

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