After credit upgrade, Phl looks forward to investment grade

MANILA, Philippines - Malacañang expressed hope yesterday the country would get an investment grade soon, as the credit rating agency Standard & Poor’s (S&P) upgraded its outlook for the Philippines to positive from stable.

Deputy presidential spokesperson Abigail Valte said this reflected the strength of the country’s financial system amidst the present global economic uncertainties.

Valte attributed S&P’s outlook upgrade to the reforms being implemented by the Aquino administration.

Valte said the government was optimistic that this outlook improvement would translate into a much-deserved credit rating upgrade in the near future.

“Right now we are still two notches below investment grade. If the reforms continue as well as the strengthening of the financial system, the (prospects for an) actual credit rating upgrade will be accelerated,” Valte said over radio dzRB.

According to Finance Secretary Cesar Purisima, the outlook improvement was the fifth positive credit rating action by various agencies for the Philippines since President Aquino took office.

The Aquino administration earlier vowed to speed up spending to frontload the economy by January.

The President said the budget allocations for various programs and projects under the 2012 budget would all be released by next month to spur economic activity. The General Appropriations Act for 2012 was signed on Dec. 15. Officials said economic drivers must have to come from within due to the crises in the Middle East, the United States, Europe, Japan and other countries.

On Friday, Budget Secretary Florencio Abad said the Aquino administration infused an additional P4.5 billion this month into the construction and rehabilitation of national roads and the installation of road safety devices across the country to fulfill the government’s agenda of boosting the economy through sound infrastructure investments.

“These infrastructure projects sustain the ongoing economic development efforts of the Aquino administration to bring direct, immediate and substantial benefits to Filipinos by improving public access to schools, hospitals, tourism spots, and market centers,” Abad said.

The Aquino administration, through the Department of Public Works and Highways (DPWH), vowed to pave all national roads by 2014 and all secondary roads by 2016.

The P4.515-billion fund released to the DPWH for the upgrade of national infrastructure projects is funded by the Motor Vehicle Users’ Charge.

Of the total amount, P4.13 billion will be used for the preventive maintenance of 1,202.85 kilometers of national roads under 516 government projects. He said this fund release will not only improve national roads but also spur economic activities in local communities.

Meanwhile, P385 million will be used for the installation, application, and construction of road safety devices along 578.5 kilometers of national roads nationwide.

Abad explained that the government approved the release of the amount after recognizing the importance of road safety projects in reducing the negative social and economic effects of road accidents.