S&P: Philippines unaffected

Standard & Poor's said the Philippine Supreme Court's decision to freeze the implementation of the expanded sales tax has no immediate consequences for the country's sovereign ratings (foreign currency BB-/stable/B; local currency BB+/stable/B).

Nevertheless, by delaying much needed fiscal consolidation, this adds to the country's external vulnerability at a time when a less favorable global environment and the ongoing political crisis surrounding the president have combined to heighten risk perceptions toward the country, S&P noted.

The agency said the ratings on the Philippines continue to be supported at the current level by adequate external liquidity, with stable foreign reserves.

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