Fitch Ratings, Inc., a respected international credit rating agency, has warned of a possible credit rating downgrade for the Philippines if the Arroyo government would resort to additional borrowings to fund its big-ticket infrastructure projects mentioned in the SONA. According to James McCormack, Director of Fitch's Sovereign Ratings Unit, the Philippine government has to generate more revenues locally to fund its planned "spending spree" otherwise it would face a deterioration in its credit standing. Moody's Investors Service, for its part, emphasized that aside from generating more revenues locally, the Arroyo administration has to maintain political stability in order to maintain its current credit standing. Read the Manila Times article here.
1 comment:
According to the SONA speech by Arroyo there are billions of pesos in the treasury because this semesters's expenses were lower than so and so period, that is why there are billions of pesos there.
That is why the World Bank will give the Philippines a whole sh-tload of dollars in loan? Is it because there is an election in May 2007?
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