S&P's Philippines 2016 "BBB" Credit Rating above Investment Grade- Strong, Per Capita up $3K USD

PH’s credit rating intact amid strong fundamentals, sound economic management —S&P

Standard & Poor’s has maintained the Philippines’ investment grade of “BBB” with a “stable” outlook, citing fundamentals and prudent management of the economy that point to sustainability of the country’s economic gains.

The long-term rating of “BBB” is a notch above the minimum investment grade, while a “stable” outlook indicates balanced risks or absence of factors that can lead to a change in the rating over the short term.

Ratings within the investment-grade scale, which help boost investor confidence, is a seal of good housekeeping that indicates ability of a sovereign to meet its financial obligations given a host of factors, including favorable economic conditions.

“High household consumption, investment, and exports (mainly of electronics, commodities, and services) continue to support economic activity. These strengths will likely be underpinned by strong household and company balance sheets, sound growth in jobs and income, inward remittance flows, and an adequately performing financial system,” S&P said.

S&P estimated that per-capita income in the Philippines would grow by 4.4 percent to $3,000 this year, and further accelerate to 4.6 percent from 2017-2019.

This is on the back of the robust growth outlook on the Philippines, which in turn is supported partly by its’ “young,” “educated,” and “flexible” workforce that is complemented by rising investments and a financial system that is able to fund consumption and business activities.

S&P likewise projected the country’s current account to remain in surplus, averaging 2 percent of GDP annually up to 2019. This is on account of continued rise in remittances, electronics exports, and revenues from business process outsourcing (BPO).

The country’s current account has been in surplus for 13 consecutive years since 2003, helping boost the country’s reserves of foreign currencies.

The gross international reserves (GIR) stood at $85.8 billion as of end-August, enough to cover over 10 months’ worth of the country’s payments for imported goods and services. International standards suggest that GIR enough to cover four months’ worth of imports is considered comfortable.

S&P also cited its outlook of a sustained decline in the general government’s debt as a proportion of GDP, from 28 percent in 2010 to 18 percent in 2019, on account of prudent fiscal management.

Meantime, BSP Governor Amando M. Tetangco, Jr. gave a statement on the latest rating decision by S&P.

“The Philippines’ ability to keep its credit rating well within the investment grade scale, which has transcended change in political leadership, is a testament that the country’s economic gains have been built from deeply rooted structural and sound policy reforms over the years,” Tetangco said.

“Through continued conduct of sound monetary policy and prudent bank supervision, as well as efficient management of the country’s external accounts, the BSP will help make sure these economic gains are further enhanced moving forward,” the BSP Governor added. – Asian Journal

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Philippine's Duterte's Answer to Australian Bishop for South China Sea Ruling - Not Patrolling the Sea

“President Duterte told military officers in Manila on Tuesday that he would not allow government forces to conduct joint patrols of disputed waters near the South China Sea with foreign powers.”

In behalf of President Duterte, The Philippines could answer the question of Australian Prime Minister Julie Bishop by how the colorful words uttered regarding the U.N. Hague ruling for South China Sea as follow:

1.    We have the U.N. that judged the disputes then it must have the U.N. Police to implement the law.

2.    It is not right for the U.N. to have the ruling then watch the feuding parties to fight ‘til who would win because they don’t have their police.

3.    It is not right for the U.N. to rely on who wants to “Police” to implement their law. Washington, Australia, Japan, Philippines and other countries have their own national interests in the area so what does it mean? The powerful would always win if anyone is allowed to police to implement the U.N. ruling.

4.    The ruling of U.N. is just a word without teeth and the Philippines doesn’t want to bite that dust and watch the handful soldiers fight and die.

5.    Why should the Philippines joined in patrolling the South China Sea if it is not capable to fight against the worlds’ top most powerful?

6.    The Philippines is more concerned on internal issues on the war on drugs and the ISIS linked terrorists Abu Sayyaf, how could the country solve the external issues without addressing first the internal issues?

Julie Bishop issues 'please explain' to Philippines' Duterte

Foreign Secretary Julie Bishop has questioned Philippines' President Rodrigo Duterte after he said he won't join US patrols through contested areas of the South China Sea.- WPA Pool

Foreign Minister Julie Bishop has questioned Philippines' President Rodrigo Duterte after he said his navy would not be joining further US patrols through contested areas of the South China Sea, despite the fact the nation initiated the push back on China's power in the region.

Mr. Duterte, who in recent days has called for US troops to move out of the Southern Philippines and hinted at buying Russian and Chinese weapons, said he did not want his country involved in US freedom of navigation patrols in the South China Sea.

"We will not join any expedition or [be] patrolling the sea. I will not allow it because I do not want my country to be in involved in a hostile act," Mr. Duterte said on Tuesday.

In July, the Permanent Court of Arbitration in The Hague ruled China's claim historic rights within the areas falling within the "nine-dash line" had no legal basis.

Australia has attracted the wrath of Beijing for calling for China to abide by the recent Hague ruling after supporting the Philippines' right to take the case to the Permanent Court of Arbitration in the first place. Ms. Bishop said Mr. Duterte should be questioned over why he does not want to enforce the ruling of the court considering his country brought the case to the court.

"I have been informed that the President of the Philippines has announced that the Philippines, as a claimant state and as the state that instigated the arbitration, has announced that the Philippines will not be sending their ships into contested areas.

"So the question should be directed to the Philippines as to what they are doing to reinforce the arbitration findings," she told reporters on Wednesday.

MS Bishop said she was surprised by Mr. Duterte's latest position.

"Well aren't you surprised that the Philippines is now not going to traverse the territory that the arbitration has just found is in the Philippines EEZ [exclusive economic zone]? And that the arbitration found that China was in breach of the Philippines sovereignty?

"And now the Philippines have said they withdraw from those contested areas the arbitration has found were within the Philippines EEZ?" she said.

Asked whether she was suggesting the Philippines should be being more active in the South China Sea, she said, "Well, the Philippines is a claimant state"

After MS Bishop warned Beijing their international reputation was at stake if they did not abide by the Hague ruling, China said MS Bishop's comment's were "wrong" and "shocking". –with source form  Fairfax Media

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LAOS: Duterte and Obama finally met and were the last persons to leave the holding room

US President Barack Obama waves to the media as he arrives for the gala dinner of ASEAN leaders and its Dialogue Partners in the ongoing 28th and 29th ASEAN Summits and other related summits at the National Convention Center Wednesday, Sept. 7, 2016 in Vientiane, Laos. (AP Photo/Bullit Marquez) (Bullit Marquez)

By The Associated Press | Wire reports
on September 07, 2016 at 1:15 PM, updated September 07, 2016 at 1:16 PM

Obama, Duterte meet despite Philippine president's crude language

VIENTIANE, Laos (AP) — President Barack Obama and Philippine President Rodrigo Duterte met informally on Wednesday in a holding room before attending a gala dinner at a regional summit, Philippine officials said.

The brief meeting took a little sting out of the soured relations caused by Duterte's intemperate language in referring to Obama earlier this week. That had caused Obama to cancel a formal meeting scheduled for Tuesday.

There was no immediate confirmation from the White House.

Philippine Foreign Secretary Pefecto Yasay told The Associated Press that the leaders had met.

"They met at the holding room and they were the last persons to leave the holding room. I can't say how long they met. It all springs from the fact the relationship between the Philippines and the United States is firm, very strong. The basis for this relationship is historical and both leaders realize this. And I'm very happy that it happened."

Obama and Duterte are in the Laotian capital along with other regional leaders for the summit. All of them made their way through the holding room before heading to the banquet hall.

On Monday, hours before arriving in Laos, Duterte told Philippine reporters he wouldn't accept questions from Obama about extrajudicial killings that have occurred during his crackdown on suspected drug dealers and users. More than 2,000 people have been killed in the crackdown since he took office on June 30.

"I do not have any master except the Filipino people, nobody but nobody. You must be respectful. Do not just throw questions. Putang ina, I will swear at you in that forum," Duterte said, using the Tagalog phrase for "son of a bitch."

On Tuesday, Duterte expressed regret over the remarks, but the damage was done.

A Philippine Department of Foreign Affairs spokesman, Charles Joe, also said Obama and Duterte met in the holding room. He said it was a mutually agreed meeting, but that he had no details of what was discussed.

Obama and Duterte entered the dinner venue separately, and were seated far apart and did not interact with each other during the dinner that lasted an hour and 20 minutes. - MLive

By The Associated Press | Wire reports
on September 07, 2016 at 1:15 PM, updated September 07, 2016 at 1:16 PM

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