S&P: Philippines unchanged

Standard & Poor's said that Philippines president Gloria Macapagal-Arroyo's admission that she spoke to an electoral official during the vote count in last year's presidential elections is unlikely to have implications that would affect the sovereign ratings on the country (foreign currency BB-/stable/B, local currency BB+/stable/B).

"Over the longer term, however, the possibility of a president weakened by diminished public support and an obstructive legislature could heighten political instability," said S&P credit analyst Agost Benard.

"That might further impede the administration's efforts to put public finances on an even keel. Such an environment would prolong the Philippines' vulnerability to adverse developments, given its high public and external debt."

The president's televised speech, in which she admitted it was her voice on a tape recording, cleared some of the uncertainty that has built up in recent weeks since the tape came to light, the agency noted.

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