MANILA, 14 July 2005 — Pressure grew yesterday for Philippine President Gloria Macapagal Arroyo to quit with the biggest rally against her so far, as security forces went on full alert amid fears of terror attacks and swirling coup rumors.

Police estimated at least 40,000 people had gathered by late afternoon. The number was quadruple the previous largest anti-Arroyo rally but still a fraction of the giant “people power” rallies that have ousted two presidents in the last 19 years.

Some carried a huge banner reading “Goodbye Arroyo,” as protest supporters rained white confetti on the crowd from nearby buildings.

Wilson Fortaleza of the left-wing Sanlakas party called the protest “a preview for a bigger storm,” saying “the situation is not yet ripe for a full-blown ‘people power.”’

“We will not stop marching until she steps down,” added opposition Sen. Panfilo Lacson. “She must now think of the interest of the country.”

Environment Secretary Mike Defensor, one of Arroyo’s closest advisers, told foreign journalists that Arroyo “will never resign.” He said the crisis over the president’s alleged election fraud is “reversible” and that public trust can be restored.

He admitted, however, that the current situation is potentially explosive, calling it “just one notch short of getting violent.”

The rally in Manila’s Makati district was seen as a test of public sentiment and an indicator of whether the opposition can muster enough support to oust her in a “people power” revolt similar to those that removed longtime dictator Ferdinand Marcos in 1986 and Joseph Estrada, Arroyo’s predecessor, in 2001.

On both occasions, the Roman Catholic Church and the powerful military withdrew their support from the presidents — but that hasn’t happened this time.

The demonstration was aimed at uniting a broad spectrum of opposition groups and parties in the biggest show of force since the political crisis erupted last month over allegations that Arroyo rigged the May 2004 election and her family received illegal gambling payoffs. “We want this rally to be big enough to jolt her,” said opposition Makati Mayor Jejomar Binay, adding that protest leaders were targeting a crowd of about 50,000. “We want a resignation, we want changes, we want reforms now.”

Adding to Arroyo’s problems, Moody’s Investors Service followed the lead of two other rating agencies and downgraded the country’s credit outlook to negative from stable, citing possible fallout on the budget and external payments “if political turmoil intensifies or is prolonged.”

“The Moody’s news has provided additional bullets to shoot down the market,” First Grade Holdings Managing Director Astro del Castillo said after the main stock index fell by 0.8 percent. National Treasurer Omar Cruz dismissed suggestions that the country may have trouble repaying its foreign debt.

Arroyo has apologized for talking to an election official before she was declared winner, but denied manipulating the ballot. She has defiantly refused a growing clamor for her to step down despite the mass resignation last week of 10 Cabinet members.

The military has declared it would stay neutral. Rumors of a brewing coup have swirled in recent weeks.

Army spokesman Capt. Ramon Zagala said there were no signs of a plot, but the crisis has agitated some soldiers.