Fitch Ratings boost: Saudi-based OFW investors elated

Overseas Filipino Workers (OFWs) in Riyadh have expressed elation over reports that state that Fitch has raised the Philippines' credit rating to that of investment.
“This is a first for a Southeast Asian country and it makes me proud as a Filipino. Many OFWs have begun business ventures in the Kingdom and I'm sure they will also infuse capital in the Philippines where they will retire,” said Gina Abitona, a teacher who had invested in a restaurant with other OFWs.
She said the report is expected to boost investment in the Philippines and lift its long-term growth potential.
“One reason why we left the country is because of the laggard economy. This is now an uptrend. It is time to consider investing in the country for OFWs who have the capital to do so,” she said.
Benny M. Quimbao, an OFW who has invested in real estate in the Philippines, said the report “encourages him to consider other business ventures back home.”
“The Fitch Ratings report is seen in the proliferation of numerous condominium buildings, which have sprouted like mushrooms all over Metro Manila,” Quimbao said.
He expressed hope that the Philippine economy will remain strong even after “President Noynoy Aquino III steps down from the presidency in 2016.”
He said investor confidence is due to the “right path” policy pursued by the current administration.
Eric S. Bihasa, manager of the Dampa Restaurant, added that the “one-notch upgrade to 'BBB' is a vote of confidence in the government's efforts to achieve fiscal sustainability, curb corruption and increase infrasructure spending and comes as a growing number of much larger economies in the West struggle to avoid credit rating downgrades."
“I was hesitant to invest in the country before but not anymore with the Fitch upgrade. In fact, I am now thinking of what business ventures I can embark upon,” he said.
In a statement, Fitch said, “The Philippines' sovereign balance sheet is considered strong relative to 'A' range peers, let alone 'BB' and 'BBB' category medians. It added that persistent current account surpluses undepinned by remittance inflows has helped the country become a net external creditor.
Fitch also said Manila has had stronger and less volatile growth than its peers over the last five year and expects a trend GDP growth of 5-5.5 percent in the coming years.
President Benigno Aquino, who took office nearly three years ago, wants to achieve a record economic growth of 8.5 percent under democratic rule before he steps down in 2016 by creating more jobs and increasing income levels in a country where a third of its 96 million people live below the poverty line.
“This means much more than just lower interest rates on our debt,” Aquino said in a stetment read by a palace spokesman.