BIZ BUZZ: For Remolona, ‘A’ rating dream still alive

It’s not game over yet for the Philippines’ long-sought “A” credit rating—at least if you ask Governor Eli Remolona Jr.

The Bangko Sentral ng Pilipinas chief said that the country’s fundamentals remain intact even after a graft scandal and an oil-price shock upended the economy.

The real challenge, he argued, lies in the storm outside rather than the hands steering the economic ship.

“Yes, it’s still possible,” Remolona said, conceding that the journey has become “a bit difficult” but adding that the country should be back on track once the headwinds ease.

The optimism comes despite Fitch Ratings’ decision to cut the Philippines’ outlook to negative from stable, warning that its “BBB” rating could slip within one to two years if fiscal conditions don’t improve.

Not long before that, S&P Global Ratings dialed down its own outlook to stable from positive, dimming hopes of a near-term climb to the elusive “A” club.

Still, Remolona insists the policy mix is holding up.