MANILA, PHILIPPINES — The Philippines' recent credit rating upgrade to 'A-' with a stable outlook is a testament to the global investment community's confidence in the nation's robust economic performance and sound fiscal policies, according to Budget Secretary Amenah Pangandaman.
According to Philippines News Agency, In a recent interview with dzRH's Dos Por Dos, Pangandaman attributed the improvement in the country's credit score to the successful implementation of a 'whole-of-government' approach, emphasizing that this reflects well on the country’s economic stability and its ability to manage debt. "It seems that the state of the economy is improving and you are able to pay off the debt. So, if you get a loan, your rates are good and then the lenders will trust you because you have a good rating," she explained.
The Budget Secretary further noted that the high credit rating underscores the Marcos administration's capability to sustain economic growth and the effectiveness of its 2022-2028 Medium-Term Fiscal Framework, as well as its measures to mitigate inflation. "The good credit rating means that you are able to pay and that lenders see the borrowed funds being used productively," Pangandaman added.
The Philippines holds two 'A-' ratings from Japan's Rating and Investment Information, Inc. (R and I) and Japan Credit Rating Agency (JCR), along with 'BBB' from Fitch Ratings, 'Baa2' from Moody's Ratings, and 'BBB+' from Standard and Poor's (S and P) Global Ratings. R and I, Japan's largest credit rating agency, cited the country's macroeconomic stability, high economic growth path, and improved fiscal balance as key reasons for the upgrade.
Looking forward, Pangandaman expressed optimism about the country achieving an 'A' credit rating as early as 2025, highlighting ongoing efforts to strengthen the economic and fiscal landscape.