The Philippines is the only Asian country to make it in the Standard & Poor’s Ratings Services’ latest list of “Rising Stars” this year.
Although the New York-based financial services company is giving more downgrades than upgrade debt ratings this year, S&P only added two countries to its list of rising stars, and Philippines is one of the two.
In its report, global credit watcher S&P said the number of its rising stars increased by two this year to 31, while its “fallen angels” count stood at 19 entities.
The “rising stars” are countries whose credit score was upgraded from junk to investment grade. An upgrade in debt ratings means it’s cheaper for rising stars to loan money to boost their economies. It also makes a country more attractive for foreign investors.
Rising stars are issuers that S&P upgraded to investment grade (rated BBB- and higher) from speculative grade (rated BB+ and lower).
Fallen angels, on the other hand, are issuers downgraded to speculative-grade (BB+ and lower) from investment-grade (BBB- and higher).
The Philippines, classified as a sovereign, received a BBB- investment credit rating from S&P, an upgrade from the previous BB+.
The Development Bank of the Philippines (DBP), a government financial institution and classified as bank, also got a BBB- rating from the previous BB+.