WASHINGTON DC — Bangko Sentral ng Pilipinas (BSP) Governor Amando M. Tetangco, Jr. said the three major international credit rating agencies are impressed with the continuing improvements in the Philippine economy.

Tetangco, in an interview Saturday night here, said that Standard & Poor’s, Moody’s Investors Service, and Fitch Ratings representatives mentioned “the favorable developments in the country, like on the monetary policy side.”

Tetangco said representatives also took note that inflation “remains within the target range as well as in the external liquidity position of the Philippines, which continues to be quite robust.”

He also said that the rating agencies have recognized the resilience of the Philippine banking system.

“Two of the new developments that they have clearly taken a note of are, first the improving fiscal position. The deficit is way below the target for 2011,” Tetangco said.

The government posted a budget surplus of P9.22 billion last month, bringing the budget deficit in the eight months to P34.49 billion, which was way below the P300-billion ceiling set for this year.

Aside from the fiscal deficit, Tetangco said the credit raters have recognized the efforts of the government to improve governance, particularly with the passage of the GOCC Governance Act of 2011.

Signed by President Benigno S. Aquino III in June, the law seeks to reform the operations of state-owned enterprises and curbing the abuses particularly on excessive bonuses and allowances.

“With the reduction or if not elimination of the rent-seeking component in government projects, BSP will also have a clear idea of the multiplier effect of these projects in the economy,” Tetangco said.

Tetangco and Finance Secretary Cesar V. Purisma, who accompanied Aquino during his visit to New York and Washington last week, stayed behind to ask Moody’s, S&P and Fitch to take a second look at the country’s sovereign credit rating, which they believe are underrated by two to three notches.

“We have emphasized to them that we think that investment grade is within sight given by the good performance in the different sectors. And the market has already recognized the improved credit standing through the narrowing spreads that we’re seen in the government debt papers,” Tetangco said.

The ratings given to the Philippines by the three international ratings firms were all below investment grade.

The Philippines received a series of credit rating and credit outlook upgrades from Moody’s, S&P and Fitch within the first year of the administration of President Aquino.

Purisima earlier said the finance department was confident the Aquino administration could attain investment class by 2013.

Higher debt ratings reduce the cost of borrowing, making it cheaper for the Philippines to sell debt to fund spending on roads, bridges and schools.

Tetangco said that the Philippines’ fundamentals remain strong amid growing fears that the world economy may slip back into recession, citing the country’s balance of payments surplus of $5 billion.

“The fluctuations in the recent periods, as I said are reflections of what’s happening in the US and these are mostly going to be short lived,” Tetangco said. “Asian economies will remain attractive investment destinations over the medium to longer term. You would see a recovery in the value of these currencies when that [uncertainty] settles.”

Asian currencies had their biggest weekly drop since 2008 on Friday’s trade as concern the global economy could slip into a recession dimmed the outlook for exports and prompted investors to favor safer bets than emerging-market assets.

“Our foreign exchange policy remains the same that the value of the peso will continue to be determined by supply and demand conditions with scope for BSP’s participation in the market to smoothen sharp fluctuation in the rate,” Tetangco said.