Finance chief expects ratings upgrade from Moody’s, S&P
Gov’t targeting a notch below investment grade
By: Ronnel W. Domingo
Philippine Daily Inquirer
Finance Secretary Cesar V. Purisima expects two other international credit watchers upgrading the Philippines’ rating to a notch below investment grade, considering the steady improvement in the country’s economic fundamentals.
Purisima said it was only fitting that Moody’s Investors Service and Standard & Poor’s follow the example of Fitch Ratings, which in June raised the Philippines’ rating to “BB+”—a step away from the level where a country’s capacity to pay its debts is perceived to be “adequate.”
Moody’s and S&P presently rate the Philippines “BB” and “Ba2,” both two notches below investment grade.
However, all the three ratings mean the country is “less vulnerable” to defaulting on its financial obligations.
According to an International Monetary Fund research, investment grade status triggers fund inflows from institutional investors who are contractually prohibited from placing their capital in non-investment grade assets.
“I believe Moody’s and S&P are under-rating the Philippines,” Purisima said Friday during an economic briefing organized by the Bangko Sentral ng Pilipinas and held at the Philippine International Convention Center in Pasay City.
“We are certainly not two notches below investment grade,” the finance chief said. “We are at the same level or even better than countries that are rated one notch below investment grade.”
Purisima cited as reasons the country’s improving balance sheet, with the ratio of outstanding debts to gross domestic product having declined to 51.3 percent as of end-June 2011 from as high as 78.2 percent in 2004.
“Netting out the debt holdings of government agencies, real debt is actually 42 percent of GDP, which is much closer to the Philippines’ peers.”
Purisima also noted that the country’s gross international reserves continued to grow to record levels, reaching $75.6 billion as of end-August.
In a prepared statement, the finance chief said the government would continue to focus on lowering the country’s debt and interest expense to be able to spend more on infrastructure and social services.
“This objective will help us attain investment grade status,” he added.
Following the rating upgrade by Fitch’s in June, Purisima said the government hoped to hit investment grade within the first half of the Aquino administration‘s term if not sooner.
pagkatoytoy na lang jud og reasoning aning tawhana...
Fear of being found out
Yet another lame excuse is being given by Noynoy in rejecting the passage of the Freedom of Information (FoI) bill that has been agreed upon by the Senate and House leaders as a prioritized bill they will work on.
The latest excuse of Noynoy is that an FoI law may be misused and abused, since there are persons who ask for information but do not use it for its proper purpose, even warning of the possibility of widespread panic caused, he said, by the improper use of the information obtained.
Widespread panic? From what quarter, the Aquino administration?
As he was quoted: “A freedom of information act sounds so good and noble but at the same time, first of all, you’ll notice that here in this country there’s a tendency in getting information and not really utilizing it for the proper purposes. What’s his basis for saying this? Just who has been utilizing information that is being denied access anyway by Malacaņang for Noynoy to claim this “tendency?”
But he says: “There are so many people who will always look at the bottle as half empty, or, sometimes, the half empty bottle even becomes a quarter (full).” That’s the tendency he speaks of?
Predictably, Noynoy blasted away at the newspapers, saying that they present their opinions as fact.
He said: “All you have to do is read our newspapers every day and I think you will agree that nobody can state a fact exactly the same in all of these newspapers. An opinion commenting on a fact is okay, but an opinion masquerading as a fact does not do anyone any good.”
Noynoy stressed that while he wants Filipinos to be completely informed, he also wants to make sure that the idea of a little knowledge leading to a “lot of danger” won’t happen here. What Noynoy wants is controlled information, which is against his claimed transparency line.
No matter the excuses he makes to shy away from getting an FoI bill passed into law, what is more truthful is that Noynoy and his boys in Malacaņang are much too scared that an FoI law would open them up to proof of his administration’s practice of graft and corruption, if not more illegality in its acts, and other deliberately hidden and irregular annexes in contracts.
Other countries have an FoI law and no president of such a country says that the information obtained legally and legitimately has been misused and abused. These are official records that are being sought and obtained by way of a law. And since these are official documents, these are factual documents. How on earth can they then be misused and abused by the media and for different purposes?
Noynoy complains that opinions in newspapers are being masqueraded as fact, or that people look at a bottle as being half-empty or even a three quarters empty.
First off, opinion is always subjective and if Noynoy sees these opinions being passed off as fact, that is his problem, not the writer’s who makes it very clear that his article appears in an opinion and commentary page, telling one and all who read him that this is his opinion and is therefore a subjective article.
Second, why should he insist that people change their ways and see the bottle as half-full instead of half-empty, just because he now sits in Malacaņang?
Noynoy, just over two years ago, was seeing the glass always three quarters empty and even completely empty during the campaign season, as he kept on blasting away at Gloria Arroyo and her government. It was also at that time when he pushed the passage of the FoI bill, and he hardly blasted away at the media then that were so anti-Gloria and to be honest, some of the news reports against her were overblown by the media while the same media went into a protective mode whenever it came to negative reports on Noynoy, both as a presidential candidate and a sitting president today.
At that time he wasn’t yet in power, he wanted an FoI bill, yet today he rejects it. Before, he thought it right to see the glass half empty and reveled in opinions then really being passed on as fact by the Yellow media. Now he says all this is wrong and abusive and fears that an FoI will be misused.
There can only be one reason for this volte face of Noynoy and his boys. As they are now in power and position, and vulnerable to documents that would be sought under such a law, they fear being found out in their illegal ways.
The Daily Tribune - Without Fear or Favor
noynoy? not really impressed so far. we need bold, long-term plans and actions... not impulsive ones...
^^sakto. band aid solutions ra mn na iyang nahiaw-an. dole outs. hahaiz...
everybody is paying tax.
there's no need to brag about it.
everybody has the right to criticize the government.
and to answer CRITICISMS is not a SUPPRESSION to that right.
it's Freedom of Speech. it does not only apply to criticisms, it also apply to speak against the criticism.
yes, that's democracy.
^nobody is making an issue.
you can criticize PNoy all day, all night, anytime you want.
why are you making it appear that when someone answers the criticisms thrown, moingon dayon ka 'dili diay pwede mo criticize sa inyong idol? sakitan mo?'
gitubag ra nang criticism diha otherwise there'll be no discussion. there'll be no forum.
and because I say my take on TAX doesn't mean i have a problem with you saying something about your tax.
you really love to put words on other people's mouth, don't you?
i am not surprised nobody is siding you with the issue on PAL.![]()
who cares kung wala ni side nako sa PAL nga issue ingon ana diay na mangita ka og kauban para lang mosulti sa imong opinion hahaha luoya diay nimo sa kay dili ka motingog mangita una ka og kauban, tsk tsk tsk.... kapoy na tubag nimo boot.... ako putting words? check your comprehension, pataka man lang ka og pasagad oi.... wala ba jud ka laing style kung dili magbalik-balik lupig pa nimoy guba nga plaka
check kuno na imong gisulti diha sa akong gi bold kung naa ba ka sa aktong pangisip! kamo ang masuko kung naay mo criticize sa inyong idol usually ang inyong mga tubag basaha og i-comprehend og maayo... gusto ninyo mohilom nal ang or tubagon dayon og "unsay may nahimo ninyo" klarong pagka istorya kamong mga yellow fans, PIKON kaayo unya mamersonal dayon kung magkalisod na... sakto di bah, BOOT?
og lain pa BOOT kung ako ang mo cut and paste ngil-ad og sayop sa unya branded as BLACK PROPAGANDA dayon pero inyong kauban mo cut and paste, ok ra sa? maski ang gi post way lami unya wa tarunga og basa kung angay ba i-cut and paste...
Last edited by networkguy; 10-01-2011 at 10:44 AM.
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