Philippines election result will not impact sovereign ratings: S&P

MANILA - S&P Global Ratings today said its sovereign credit ratings on the Philippines are unaffected by the Presidential election. “We expect fiscal and economic policies under the incoming Administration to remain supportive of the 'BBB' long-term rating on the Philippines (BBB/Stable/A-2; axA/axA-2), S&P said.

Based on unofficial estimates, Davao City Mayor Rodrigo Duterte is likely to become the next President of the Philippines. Duterte campaigned on an anti-crime platform and promised to push for constitutional reforms.

“However, he has given few details regarding the shape of economic policies to come under his Presidency,” S&P said.

“Nevertheless, we expect the incoming Administration to continue with policies that contributed to sovereign rating improvements in the past few years.

“Duterte's track record of more than 20 years in Davao gives few indications that he would embark on economic policies significantly different from the Arroyo and Aquino administrations.

“Consequently, we believe the new Administration will maintain fiscal policy to keep fiscal deficits to low single digits. Policies affecting business are also likely to be supportive of continued investment growth.

“In the near term, however, business may be more cautious about expanding, given uncertainties over the new Government's policy orientation.” www.standardandpoors.com (ATI).