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Meralco’s power generation charge seen up in April

MANILA Electric Co. (Meralco) is likely to record higher power generation charge next month due to an observed rise in the rates at the wholesale electricity spot market (WESM), an official of the distribution utility said on Tuesday.

An increased generation charge may point to higher power rates.

“Based on early, initial projections, there may be [a] higher generation charge for the month of April 2021 due to observed increase in WESM prices,” Meralco Vice President and Head of Corporate Communications Joe R. Zaldarriaga told BusinessWorld on Viber.

This comes around two weeks after the market operator of the WESM noted an increase in spot market prices, which averaged at P4.23 per kilowatt-hour (kWh) in early March. The increase was attributed to a “gradual surge in demand” as the economy continued to recover.

Meralco previously said that the generation charge for March stood at P4.3749 per kilowatt-hour (kWh), P0.0403 lower than February’s P4.4152 per kWh.

Mr. Zaldarriaga said that this month’s daily load-weighted average price (LWAP) in Luzon, where Meralco’s franchise area is located, was higher compared with the level in February.

“Daily Luzon LWAP reached P8/kWh during the week of March 1 and P9/kWh during the week of March 15. In comparison, the daily LWAP was below P3/kWh for most of February,” he said.

He added that Luzon’s peak demand increased by over 900 megawatts this month due to warmer temperatures and “large capacities on outage persisted.”

Typical households, or those that consumed 200 kWh, saw a P72 drop in their power bills in March, as the overall power rate stood at P8.3195 per kilowatt-hour kWh. The current rate was P0.3598 per kWh lower than the February level.

Meralco previously said that March’s rate reduction was mainly caused by the firm’s P13.89-billion distribution rate true-up refund, which was implemented this month.

The refund was in line with the Energy Regulatory Commission’s directive to Meralco in reimbursing over-recoveries based on the company’s actual weighted average tariff charges from July 2015 to November 2020. The amount will be returned to customers over a two-year period or until it has been fully refunded.

Shares of Meralco in the local bourse were unchanged at P270 apiece on Tuesday.

Meralco’s controlling stakeholder, Beacon Electric Asset Holdings, Inc., is partly owned by PLDT Inc.

Hastings Holdings, Inc., a unit of PLDT Beneficial Trust Fund subsidiary MediaQuest Holdings, Inc., which has interest in BusinessWorld through the Philippine Star Group, which it controls.” — Angelica Y. Yang

Arts & Culture (03/31/21)

Ortigas Foundation publishes Legarda’s essay on Philippine churches

IN RECOGNITION of Benito J. Legarda, Jr.’s major contribution to the history of Hispanic Church architecture in the Philippines, the Ortigas Foundation has published a memorial edition of his seminal essay on early churches. Illustrated throughout with beautiful, full color photographs, this annotated 71-page edition of Hispanic Philippine Churches: An Architectural Study is a work of both important scholarship and beauty. Limited hardbound copies are available for P650. There is also an e-book version for P250. For orders e-mail ortigasfoundation@ortigas.com.ph.

Yuchengco lecture looks at women in art

IN CELEBRATION of Women’s Month, the Yuchengco Museum presents the video lecture Women, Framed: A Look at Women in Philippine Art and Society. Museum director Jeannie Javelosa discusses a number of works in the museum’s collection including several paintings by National Artists Fernando Amorsolo and Botong Francisco, Hernando Ocampo and Anita Magsaysay-Ho, Norma Belleza and Eduardo Castrillo, among many others. View the lecture at (167) WOMEN, FRAMED – A Look at Women in Philippine Art and Society – YouTube ).

See all the Louvre art online

ONE can now view all 480,000 pieces that make up the art collection of France’s Louvre Museum online at https://collections.louvre.fr/en/page/apropos. An interactive map allows visitors to explore the museum rooms. The map is updated regularly by museum experts.

Ortigas Foundation Library to hold talks on collecting

Ortigas Foundation Library Executive Director John Silva will give a talk on why people collect Filipiniana books, discussing the duds and treasures found in his 50 years of collecting, and give pointers on being the best obsessive collector of Filipiniana in a talk “The Crazy Obsession with Collecting Filipiniana Books” on April 10, 2 p.m. as the Ortigas Library brings back the #COOLECTIONS series this April. On April 2, 2 p.m., there will be two talks: “All About Anting-Anting” with Jeffrey Lubang and “Anting-Anting Collection” with Robert Enriquez. The talks will be livestreamed on the Ortigas Foundation Library’s Facebook page https://www.facebook.com/Ortigas.Foundation.

CCP launches three books

DIFFERENT departments of the Cultural Center of the Philippines (CCP) are launching books this month and next. Commemorating four decades of the CCP Outreach Program, the book Lakbayin ang Sining: Readings in Creative and Cultural Work in the Philippines features narratives, testimony, and heartwarming stories about arts and cultural work in the Philippines as recounted by Filipino artists, cultural workers, and arts organizations from various provinces and communities nationwide. Edited by Alejandro D. Padilla and designed by Paul Pagunsan, the book highlights for its cover Leonardo “Bing” Cariño’s artwork from the MINTODA series (short for Mindanao Tricycle Operators and Drivers Association).  Lakbayin ang Sining is available online through the Facebook page of the CCP Shop (https://www.facebook.com/theccpshop). As part of the celebration of Women’s Month, an e-book about Filipina playwrights, ELEMENTAL: Mga Babaeng Mandudula at mga Elemento ng Drama, will be launched on March 31, 2 p.m., over the official Facebook pages of the CCP (https://www.facebook.com/culturalcenterofthephilippines) and CCP Intertextual Division (https://www.facebook.com/CCPInterxtualDivision/). This launch is part of the CCP’s celebration of National Women’s Month. The plays selected were chosen from works staged from various editions of the Virgin Labfest, the CCP’s annual theater festival. The selected works will help in defining the elements of a play. Edited by Layeta Bucoy, this e-book can also be considered as a manual in writing for theater. It includes Clarissa Estuar’s Ang Mamanugangin Ni Rez. Debbie Ann Tan’s Fate’s Line, Mga Babaeng Toobright, Dragon’s Breath, Layeta Bucoy’s Ang Anak ni Gloria; and Liza Magtoto’s Paigan and Anonymous. For inquiries, send an e-mail to ccpintertextualdivision@gmail.com or text  0919-317-5708. Meanwhile, the CCP Intertextual Division will launch the latest online edition of Ani, the official literary journal of the CCP, on April 7, 2 p.m., via the official Facebook pages of the CCP and CCP Intertextual Division. Ani 41: Lakbay will feature multilingual Philippine literary works on travel published in a digital platform and will be accessible online for free. Edited by Herminio S. Beltran, Jr., with Mia P. Tijam as the special section editor, the literary journal features 146 works selected from over thousands of submissions from different parts of the country and the world. The selected works include travel essays, poems, short fiction, and are written in English, Filipino, Bicol, Bicol Rinconada, Pangasinan, Cebuano, Visayan, Waray-waray, Iloko, Hiligaynon, Kankanaey and Akeanon. The Ani 41: Lakbay e-book will be accessible to the public and will be available for free download. For more information, visit the CCP Intertextual Division Facebook page.

Ballet Philippines video for Women’s Month

BALLET Philippines has partnered with the Yuchengco Museum to present the world premiere of Ode to the Feminine to celebrate Women’s Month. The performance depicts women’s empowerment with “The Power of Choice” as its central theme. The ballet focuses on the female-centric paintings by National Artists Botong Francisco and Fernando Amorsolo — Courtship Ritual and Princess Urduja, respectively — that are displayed in the Museum. The video can be seen here: Ode to the Feminine (ballet.ph).

CCP buildings undergo disinfection, closed from April 1-4

THE Cultural Center of the Philippines (CCP) is currently undergoing a thorough disinfection and sanitation of all its buildings until March 31, to ensure the safety and well-being of employees and artists entering the premises in view of the rising coronavirus disease 2019 (COVID-19) cases in the country and positive cases among CCP employees.  Likewise, the CCP will be closed to the public from April 1 to 4 in observance of the Holy Week.

Philippine labor force situation (Feb. 2021)

THE RANKS of jobless Filipinos increased in February, a month before the government tightened lockdown restrictions in Metro Manila and nearby provinces due to a surge in coronavirus disease 2019 (COVID-19) cases, according to the latest data on jobs. Read the full story.

Philippine labor force situation (Feb. 2021)

Virus poses risks to companies, households — BSP

THE BANGKO SENTRAL ng Pilipinas (BSP) joined monetary policy makers in Asia-Pacific to discuss the challenges posed by the coronavirus pandemic and the policies needed against financial stability risks.

The conference was hosted by the International Monetary Fund’s Asia-Pacific Department on March 25 and included senior policy makers all over the region.

“We know that we have to manage the servicing of existing debts and we know that some firms may no longer be as viable in the New Economy,” BSP Assistant Governor Johnny Noe E. Ravalo said in his remarks at the conference.

The central bank official noted how the pandemic-induced recession made private corporations vulnerable.

“This problem, its surprise occurrence, and its sheer magnitude are uniquely different and require creative interventions from the authorities,” Mr. Ravalo said.

BSP Governor Benjamin E. Diokno has said they remain vigilant of emerging risks that could threaten financial stability. He said they will intensify their surveillance on financial institutions to ensure continued soundness, stability, resilience, and inclusivity in the banking system.

Financial regulatory officials have been on guard for potential systemic risks — where an event at the company level could trigger severe instability or the collapse of an entire industry or economy — due to the global recession.

Meanwhile, Mr. Ravalo said vulnerable households should also be kept in mind in terms of policy making for a holistic whole-of-market approach.

“We need to actively communicate so that people can make informed choices. And we should be concerned with welfare changes within society because this is what financial stability is all about after all,” he said. — L.W.T. Noble

#TeamVaccines: The people making COVID‑19 vaccines need them as much as we do

Across the globe, people have been working around the clock to develop and manufacture the vaccines that will help protect us from coronavirus disease 2019 (COVID-19). They don’t just want the vaccines for their families, they want them for the world. People who work within the biopharmaceutical industry have been affected by the global pandemic in many of the same ways that everyone else has. They’ve had to deal with loss, balancing work, and homeschooling while also supporting family members, parents, and friends in unexpected ways. All the while working to help advance science and bring COVID-19 vaccines into the world. In today’s column, I want to share some of their stories.

Rita works on global clinical development of vaccines in the US. Amid the pandemic, balancing work and kids, and protecting her elderly parents — especially her father who has diabetes — has been a big challenge for her. Rita’s husband is a doctor who works on the frontline. “He has scars on his face from wearing PPE [personal protective equipment], but it’s just something he has to do,” she says. “We hope COVID-19 vaccines will relieve some of the pressure on hospitals and healthcare workers like him.”

As an infectious disease physician, Rita understands the process of vaccine development and trusts the science. “At every step, our work goes through rigorous research and development processes. Vaccines are tested with tens of thousands of people and the results are verified by independent experts before they can be made available to the public.”

Rita and her family plan to get vaccinated against COVID-19 as soon as they are eligible. “I hope everyone who is eligible to get vaccinated will do the same. Vaccination is one of the best tools we have to help protect those we love, and to help us fight and hopefully end the pandemic. And, that’s what we need to do to get back to normal.”

Patrick, a vaccine scientist in France, has seen the devastating impact that COVID-19 has had on families firsthand. His two elderly uncles got COVID-19. One uncle was in a coma for several weeks after developing serious complications, and had to undergo surgery and receive skin implants on the side of his cheeks. Another uncle ended up in hospital on a respirator. Thankfully, both have recovered. To help protect his elderly parents, Patrick, like many of us, had to forego their traditional holiday gathering last year.

“It’s so important to me that we create a safe and effective vaccine because my family has been badly affected by the disease. By getting vaccinated, you won’t just be protecting yourself, you’ll be helping to protect all the vulnerable people like my uncles and parents too,” said Patrick.

Omon works with the government in Nigeria to prepare the country for the rollout of COVID-19 vaccines — from strengthening healthcare delivery to providing immunization awareness support. The pandemic has made matters worse in Nigeria, a country where about 40% of the population live in poverty.

“Convincing people who have very little and depend on daily work, or selling goods at the market to have enough to eat, to follow lockdown isn’t easy — we’re talking about people’s livelihoods. So, putting lockdowns in place was a major challenge for the government,” said Omon.

Omon lost a good friend to COVID, a doctor working on the front line who was doing his best to save lives. “I’m more determined than ever to do all I can to protect others like him and support our healthcare systems, so that they are ready to introduce COVID-19 vaccines, and equipped to maintain routine immunization programs.”

Katrin is part of a team in Austria that is involved in the research and development of new vaccine candidates. Because of the pandemic, she and her husband have been working from home while at the same time homeschooling their children. She worries about her parents who are both over 80; the pandemic has prevented her from visiting them more often. “It’s been hard for me, but even harder for my parents not to see their grandchildren who they love very much and who keep them active. As COVID-19 vaccines become available and as more and more people get vaccinated, I hope I will be able to be there for my parents again.”

Everyone on Katrin’s team of vaccine researchers has been impacted by the COVID-19 pandemic. Many of them know someone who has been sick. They have all struggled in their own ways, and they all have a personal story that motivates their work. “We all want our kids — and families everywhere — to get back to normal. That’s why we’ve been working around the clock to advance the science of COVID-19 vaccines. We trust that the hard work will get us one step closer to ending the pandemic.”

We are honored to be working with Rita, Patrick, Omon, Katrin, and others in #TeamVaccines in containing the pandemic. Indeed, the COVID-19 pandemic is getting worse each day as the country exceeds 10,000 cases per day. Filipinos working in the biopharmaceutical sector have also lost loved ones to the pandemic. They, together with their colleagues in other parts of the world, are working harder to somehow bring us back to the days when we could walk freely in a park and get together with family and friends.

 

Teodoro B. Padilla is the executive director of the Pharmaceutical and Healthcare Association of the Philippines (PHAP). PHAP and its member companies represent the research-based pharmaceutical sector in the country.

National Government Fiscal Performance

THE NATIONAL GOVERNMENT’S budget deficit more than tripled to P116 billion in February against its year-ago level, as the double-digit growth in spending outpaced the uptick in revenues, the Bureau of the Treasury (BTr) reported on Tuesday. Read the full story.

National Government Fiscal Performance

How PSEi member stocks performed — March 30, 2021

Here’s a quick glance at how PSEi stocks fared on Tuesday, March 30, 2021.


Shares drop as market sentiment turns cautious

STOCKS declined on Tuesday as investors remained cautious, while some cashed out ahead of holidays in observance of Holy Week.

The Philippine Stock Exchange index (PSEi) went down by 62.23 points or 0.94% to end at 6,545.55 on Tuesday. The all shares index likewise dropped by 22.23 points or 0.55% to close at 3,965.86.

“The PSEi took a step back and ended lower as traders took profits from the minor rally in the previous session,” AAA Southeast Equities, Inc Research Head Christopher John J. Mangun said in a Viber message.

The PSEi’s decline was caused by uncertainty in the market, he said.

“The losses were not because of panic selling as investors may have gained some optimism from the President’s announcement of cash stimulus and the removal of restrictions for the private sector to bring in their own supply of vaccines,” Mr. Mangun added.

President Rodrigo R. Duterte approved the proposal of the Department of Budget and Management for aid amid tighter restrictions on movement under which P1,000 per person and not more than P4,000 per family will be allocated. The approved proposal will cost some P23 billion, which will be financed through the Bayanihan to Recover as One Act.

“The general sentiment remains cautious amid the uncertainty on the extension of stricter quarantine on the country’s capital,” Mr. Mangun said.

He noted that the market traded lower than usual “due to the uncertain environment.”

Meanwhile, Regina Capital Development Corp. Head of Sales Luis A. Limlingan said investors are booking ahead to the trading break for the holidays on Thursday and Friday to commemorate Holy Week and investors are choosing “to keep in cash in the meantime.”

Majority of the PSE’s sectoral indices declined on Tuesday, except for industrials, which gained 88.98 points or 1.03% to 8,654.48.

Meanwhile, property lost 69.99 points or 2.09% to close at 3,279.42; financials went down by 21.35 points or 1.5% to 1,399.34; services slumped by 10.48 points or 0.72% to 1,430.25; holding firms fell by 36.67 points or 0.55% to finish at 6,606.75; and mining and oil declined by 31.08 points or 0.36% to 8,559.87.

Value turnover went down to P4.7 billion on Tuesday with 1.5 billion issues traded, from the P7.27 billion with 2.88 billion shares switching hands on Monday.

Decliners narrowly outnumbered advancers, 104 versus 103, while 46 names closed unchanged.

Foreigners turned sellers anew, with net outflows totaling P483.34 million on Tuesday against the P30.43 million in net purchases seen the previous trading day.

“Market will continue to be volatile, consolidating within a narrow range 6,400-6,500 with a downward bias due to the lockdown duration uncertainties, eliciting rating agencies’ warning on [the] Philippines’ credit rating,” First Metro Investment Corp. Head of Research Cristina S. Ulang said in a Viber message. — Keren Concepcion G. Valmonte

Peso weakens on wider Feb. deficit, tighter restrictions

THE PESO retreated versus the greenback on Tuesday due to cautious sentiment after the release of data showing a wider budget deficit in February and renewed restriction measures in more parts of the country as coronavirus infections continue to rise.

The local unit finished trading at P48.545 per dollar on Tuesday, weakening by 13 centavos from its P48.415 close on Monday, data from the Bankers Association of the Philippines showed.

The peso opened the session at P48.42 versus the dollar. Its weakest point was at P48.555 while its intraday best was at P48.41 against the greenback.

Dollars exchanged increased to $770.67 million yesterday from $576.4 million on Monday.

The peso weakened due to risk-off sentiment following the wider budget deficit recorded in February, Rizal Commercial Banking Corp. Chief Economist Michael L. Ricafort said in a text message.

Preliminary data released by the Bureau of the Treasury on Tuesday showed the budget deficit stood at P116 billion in February, 208% more than the P37.6-billion gap seen a year earlier and 728% higher than the P14-billion deficit in January.

Faster spending compared with the growth in revenues caused the surge in the budget deficit, the Treasury said.

Meanwhile, the announcement of new restriction measures for other areas of the country also affected the peso, a trader said in an e-mail.

President Rodrigo R. Duterte on Monday night announced that Quirino province will be placed under modified enhanced community quarantine from April 1 to 15, while Santiago City in Isabela will be under the same lockdown classification for the whole April.

Meanwhile, Cagayan, Isabela, Nueva Vizcaya, Batangas, Tacloban City, Iligan City, Davao City, Lanao del Sur, and the entire Cordillera Administrative Region will be under a general community quarantine in April.

Metro Manila and surrounding provinces Cavite, Laguna, Rizal, and Bulacan are under the tightest lockdown measures from March 29 to April 4 to prevent further spread of the virus.

COVID-19 cases increased by 9,296 on Tuesday to bring the total to 741,181 infections. Active cases were at 124,680.

For Wednesday, Mr. Ricafort gave a forecast range of P48.50 to P48.60 while the trader expects the local unit to move within P48.45 to P48.65 per dollar. — L.W.T. Noble

Government firms remit P21.44B in dividends to national Treasury

TEN GOVERNMENT-OWNED and -controlled corporations (GOCCs) remitted a combined P21.44 billion in dividends to the Treasury just before the close of the first quarter, helping finance the coronavirus containment effort, the Department of Finance (DoF) said Tuesday.

The DoF said as of March 26, the National Transmission Corp. remitted P8.3 billion and the Philippine Deposit Insurance Corp. P7.1 billion.

Last year, at the height of the pandemic, the government also asked GOCCs to remit their dividends ahead of time, after revenue was dampened by the lockdown, which slowed the economy and reduced opportunities to collect tax revenue.

Republic Act 7656 requires GOCCs to remit to the National Government at least 50% of their net income as dividends.

GOCC dividends to the government hit a record P157 billion in 2020.

The government is expected to ramp up spending again this year after the capital region and its surrounding provinces were placed under the strictest form of quarantine for a week.

One of the spending items is a new cash aid program as approved by the Development Budget Coordination Committee (DBCC), the details of which were due to be reported by the Palace, according to Budget Undersecretary Laura B. Pascua on Tuesday.

Ms. Pascua said the additional funds will not push the budget deficit to exceed the 8.9% of gross domestic product cap set by the DBCC late last year.

“(The budget for the subsidy program will not come) from 2021 (budget) because we want to still support growth for the year. Infrastructure funds will be protected as much as possible,” she added.

The government has a P4.5-trillion budget for this year, over P1 trillion of which was allotted to infrastructure projects.

The proposed subsidy program follows the P23 billion in cash aid for poor households over two months launched by the government at the start of the lockdown.

The Department of Budget and Management on Tuesday said it has released the funds to local government units (LGUs), which will facilitate the distribution of assistance in the National Capital Region, Bulacan, Cavite, Laguna, and Rizal.

An estimated 22.9 million individuals are expected to receive P1,000 worth of assistance from their LGUs either in cash or in kind. — Beatrice M. Laforga

UN ESCAP downgrades Philippine growth forecast as virus infections surge

THE PHILIPPINE economy is expected to expand by 6.5% this year, downgraded from the previous estimate of 7% due to its failure to contain the coronavirus outbreak, a United Nations (UN) agency said.

The UN Economic and Social Commission for Asia and the Pacific (ESCAP), updated the forecast it had issued in August in its Economic and Social Survey of Asia and the Pacific 2021 report, released Tuesday.

In 2022, ESCAP is projecting growth of 6%.

The official government forecasts are 6.5-7.5% this year and 8-10% in 2022, both of which were projected before the latest spike in the coronavirus disease 2019 (COVID-19) case count.

“Only a few countries, such as Vietnam, managed to fully capture this tailwind. Indonesia, Malaysia and the Philippines remain mired in prolonged pandemic threats and economic disruptions,” it said in the report.

ESCAP said the economy’s heavy reliance on remittances may further hamper the recovery because overseas worker job stability and wages are also threatened by the prolonged global health crisis.

The 2021 projection for the Philippines was second in Southeast Asia, after Vietnam’s 7%. The regional average was 4.7%.

ESCAP warned that the impact of the pandemic will worsen poverty in the Asia-Pacific region, where an estimated 89 million more people will be pushed back into extreme poverty, defined as those living with less than $1.90 per day.

“The haphazard and less-than-adequate response by governments to such a shock highlights the urgency to rethink economic policymaking, which has so far been focused primarily on economic growth, neglecting critical investments in people and in building resilience,” ESCAP said.

Further downside to the region’s growth prospects comes from the resurgence in coronavirus cases and new lockdowns. Meanwhile, mass vaccination programs could be slowed due to challenges encountered during rollout, with most developing economies in Asia-Pacific only achieving herd immunity by next year.

“A ‘K-shaped recovery’ is likely, with poorer countries and more vulnerable groups being marginalized in the post-pandemic recovery and transition period,” it said.

The Philippine capital and nearby provinces were placed under strictest lockdown settings for the week to April 4 after the daily case count exceeded 10,000 for the first time during the pandemic.

ESCAP estimated Philippine inflation to average 2.9% this year, up from 2.6% in 2020. In 2022, inflation is expected to average 3.1%.

The inflation forecasts are both within the central bank’s target range of 2-4%, but lower than the recent estimate of 4.2% inflation for 2021 issued by the Bangko Sentral ng Pilipinas.

“COVID-19 is a shock like no other and it requires a response like no other. The time is now for the Asia-Pacific region to seize this opportunity to speed up and make its transition towards more resilient, equitable, and green development the centerpiece of the post-pandemic economic recovery,” according to Armida Salsiah Alisjahbana, UN undersecretary-general and executive secretary of ESCAP. — Beatrice M. Laforga

Philippine credit quality to lag behind peers, says S&P

THE RECOVERY in the Philippine banking system’s credit quality is lagging the Asia-Pacific region due to renewed quarantines following its inability to control the coronavirus outbreak, according to S&P Global Ratings.

S&P Global said the other laggards are Indonesia and Malaysia, noting that the credit quality of other economies in the region is improving.

“Lackluster domestic demand could delay the resumption of revenues and income, slowing the unwind of debt built-up from the COVID-19 pandemic,” S&P said in a note Tuesday.

S&P identified China, New Zealand, Taiwan, and Vietnam as the recovery leaders in the region after they successfully contained their outbreaks and have started reaping the benefits in the form of strong export demand.

It said the Philippines, India, Indonesia, and Malaysia are still facing hurdles in containing their outbreaks, leading to a delay in resuming economic activity.

“Unexpected policy changes may threaten the trajectory of economic recovery,” it added.

Metro Manila and the surrounding provinces of Cavite, Laguna, Rizal, and Bulacan were returned to the strictest lockdown settings between March 29 and April 4 to allow healthcare facilities room to recover from the spike in cases. Other provinces have likewise seen their quarantine settings become more restrictive.

S&P Global also warned about the risk from US-China confrontation, slow vaccine rollouts, new waves of infection and policy uncertainty, any of which could hinder the recovery in credit quality.

Last week, S&P downgraded its growth forecast for the Philippines to 7.9% from 9.6% previously. The economic growth outlook for next year was likewise trimmed to 7.2% from an earlier forecast of 7.6%.

S&P Global last affirmed the Philippines’ “BBB+” long-term credit rating in May with a stable outlook, signifying that the rating may be maintained over the next 18 to 24 months. — Luz Wendy T. Noble