BEIJING, Aug. 17 (Xinhua) -- Chinese rating agency Dagong said Wednesday that it has maintained its credit rating for the Philippines at "B+ with a stable outlook."
The Philippine government's ability to repay its debts will improve slightly, as the possibility of political turbulence in the short-term is small and the country's economy will continue to grow, Dagong said in a statement.
According to Dagong's projections, the Philippine government's budget deficit will stand at 3.3 percent of the country's gross domestic product (GDP) for 2011 and will be reduced to 2.6 percent for 2012, lower than the 3.7 percent registered last year.
Domestic restraints, coupled with a slowdown in economic growth, will limit the country's economic expansion, Dagong said, predicting a 5.0-percent increase in 2011 and a 4.9-percent rise in 2012, lower than the 7.3-percent growth recorded in 2010.
In June, Dagong's rival Fitch Ratings upgraded the Philippines' credit rating to BB+ from its previous BB rating, while Moody's raised its rating by one notch to Ba2.
Dagong said that the domestic factors that have hampered the Phillippines' economic development have not changed much since 2010.
The current government's fiscal consolidation measures will help reduce its deficit and maintain its ability to repay debt, Dagong said.