Takahira Ogawa, the agency's Asia-Pacific director for sovereign ratings, said the revolt by some 300 men who seized a commercial complex in the Makati financial district might not be significant in the long term.

S and P looks at the quality of the government and the size of the mutiny is not significant, he told journalists.

"We don't see it (affecting) the debt payments of the Philippines," he said.

But he added that "if there are more developments that call for a re-rating then we will review it."

The mutiny might have an effect on foreign exchange and foreign direct investment, but no so much on the credit rating, Ogawa said.

The mutiny ended late Sunday after mediators convinced the rebels, who complained of low pay and corruption in the military and demanded the resignation of Arroyo and Defense Secretary Angelo Reyes, to return to their barracks.

The government has vowed to investigate those involved in the military as well as politicians suspected of supporting or instigating the mutiny.

Under the credit rating agency's system of grading debt payment capacity, a BB rating from S and P is given to bonds which are just below investment grade and are considered to have speculative elements.

WAR.WIRE