Standard and Poor (S&P) Global is a business intelligence company that provides credit ratings on bonds, countries, and other investments. Its credit ratings represent the general creditworthiness of the countries, company, cities that issues debt. Importantly, these credit ratings are information used by various investors to evaluate country’s economy.
S&P credit ratings are updated depending on countries performance. Asian countries were rated accordingly: Singapore rated AAA (1995); A- for Malaysia (2008); BBB+ for Philippines (2019); BBB- for Indonesia (2017); BBB+ for Thailand (2010) and BB- for Vietnam (2019).
Recently, S&P upgraded the long-term sovereign credit score of Philippines to BBB+ from BBB. Based on the report of Business World, “S&P raised the rating to reflect the Philippines’ strong economic growth trajectory, which we expect to continue to drive constructive development outcomes and underpin broader credit metrics over the medium term. The rating is also supported by solid government fiscal accounts, low public indebtedness, and the economy’s sound external settings”.
Moreover, report also stated that S&P assigned a ‘stable’ outlook to the rating, which means it expects to maintain its grade in the next six months to two years as the economy is likely to remain strong over the medium term.
For the first time in 9 years, S&P also upgraded Vietnam’s long-term sovereign credit ratings to BB from BB-. S&P stated that the outlook of the country mirrors the rapid economic expansion. The development is attributed by country’s external settings, which feature broadly balanced external accounts, strong foreign direct investment inflows and a manageable external debt burden.
Asian countries-maintained S&P credit ratings
In Malaysia, S&P maintained its rating despite of the restoring fiscal position of the country, Report from The Edge Markets, “the government’s commitment to gradual fiscal consolidation and expects the one-off pressures such as the funding of goods and services tax (GST) rebates should abate after 2019.
Amid of the volatile global capital flows and widening Credit Account Deficit (CAD), Indonesia had its stable outlook on its sovereign credit rating in 2017.
Further, Singapore’s unchanged rating of AAA since 1965, emphasized country’s robust public finances and external positions, strong institutions, and prudent economic management.
Reuters reported that Thailand’s stable outlook reflects on country’s strong credit metrics which off-sets ongoing political uncertainties in the next two years.
World Government Bonds: http://www.worldgovernmentbonds.com/credit-rating/
S&P upgrades Philippines credit ratings: https://www.bworldonline.com/sp-upgrades-philippine-debt-rating/