standard & poors Archives » Pinoy Money Talk

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.

Standard & Poor’s (S&P) credit ratings by country (2014)

A credit rating is a measure of the credit worthiness of a government, a public entity, or a private corporation. The credit rating is also used as an assessment of the quality of debt instruments issued by any of these organizations.

S&P downgrades US outlook to 'negative'

Credit rating agency Standard & Poor’s (S&P) downgraded to “negative” today its outlook on the United States sovereign debt, citing the risk that the government will be unable to curb rising debt and the growing deficit.
According to the New York-based credit rating agency:
Because the U.S. has, relative to its AAA peers, what we consider to be very large budget deficits and rising government indebtedness, and the path to addressing these is not clear to us, we have revised our outlook on the long-term rating to negative from stable.

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