Philippines Maintains ‘BBB’ Credit Rating: Business Leaders Attribute Stability to Sound Fiscal Management

Manila, Philippines – Business leaders in the Philippines have expressed optimism following the reaffirmation of the country’s ‘BBB’ credit rating by American credit rating agency Fitch, maintaining a ‘stable’ outlook. Francis Chua, Chairman Emeritus of the Philippine Chamber of Commerce and Industry (PCCI), emphasized that this stable rating, despite the global economic downturn, signifies the effectiveness of the incumbent administration’s fiscal management and the country’s solid economic fundamentals.

According to Philippines News Agency, Chua, in an interview with the Philippine News Agency, acknowledged that while a credit rating upgrade remains elusive, the Philippines’ stable rating is commendable given the economic challenges faced by many developed countries. The PCCI leader attributed this stability to President Ferdinand R. Marcos, Jr. and his economic team’s efforts.

Globally, events such as the Russia-Ukraine war, OPEC production cuts, and the Israel-Hamas conflict have impacted world markets. The European Union’s executive arm even revised down its 2023 growth forecast for the eurozone. In contrast, Fitch forecasts the Philippines to sustain over 6.0 percent growth, supported by infrastructure investments and trade and investment reforms.

Chua pointed out that local industries and the agricultural sector require attention to enhance productivity, a key factor in elevating the country’s global standing. Jesus Varela, Director General of the International Chamber of Commerce (ICC), noted the Philippines’ renewed relations with leading economies, including the United States, as a factor behind positive reports from rating agencies.

Varela also highlighted the current administration’s commitment to honoring the country’s financial obligations, boosting investor confidence. Jeng Calma, Head of Operations at A and A Securities, remarked that the positive signal from Fitch Ratings has not yet significantly influenced the local financial and capital markets. Despite good earnings reports from blue chip companies, the stock market has shown only modest growth, with investors awaiting more encouraging economic news.