A glimpse of the Cebu City skyline from the mountains of Busay in Cebu City. | Carl Ong
Japan’s Rating and Investment Information Inc. (R&I) has upgraded the Philippines’ credit rating to ‘A-’ with a stable outlook, citing strong economic growth and a better fiscal position.
This is the country’s second ‘A-‘ credit rating, following a similar rating from the Japan Credit Rating Agency in 2020.
READ: ‘A’ rating for PH possible as early as 2025, says Pangandaman
This latest upgrade represents an improvement of one notch from the R&I’s earlier rating of BBB+ on the Philippine government.
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“The Philippine economy will likely see stable growth and continuous improvement in the level of national income against the backdrop of active public and private sector investments, development of domestic business sectors such as business process outsourcing, and favorable demographics, among other elements,” the report said.
Finance Secretary Ralph Recto said the upgrade signaled strong investor and creditor confidence, leading to lower and more affordable borrowing costs for both the government and the private sector.
“Our refined medium-term fiscal program is our blueprint for our road to A rating. This ensures that we can reduce our deficit and debt gradually in a realistic manner, while creating more jobs, increasing our people’s incomes, growing the economy further and decreasing poverty … ”