MANILA: The upgrade of the Philippines’ credit rating to ‘A-‘ with a stable outlook reflects investors’ confidence in the country’s robust economy and fiscal policy, Budget Secretary Amenah Pangandaman said on Friday.
In an interview with dzRH’s Dos Por Dos, Pangandaman said the implementation of the ‘whole-of-government’ approach played a key part in the country’s improved credit score.
‘Kumbaga po gumaganda ‘yung katayuan yung estado ng ekonomiya at kaya mong magbayad ng utang. So, kung mangutang ka, maganda ‘yung rates mo and then mag-tiwala sa ‘yo ‘yung mga nagpapautang kasi maganda ‘yung rating mo (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 said.
Pangandaman said the Philippines’ high credit rating is proof that the Marcos government can sustain the country’s economic growth.
She added that it also indicates the effectiveness of the admini
stration’s 2022-2028 Medium-Term Fiscal Framework and the initiatives to ease inflation.
“Maganda ‘yung credit rating. Ibig sabihin po nakakabayad kayo at saka nakikita po nila na yung inuutang niyo, ginagamit niyo productively (The credit rating is good. It means that you are able to pay and then they see that you are using the borrowed money productively),’ Pangandaman said.
The Philippines currently holds two ‘A-‘ ratings from the Japan’s Rating and Investment Information, Inc. (R and I) and Japan Credit Rating Agency (JCR), ‘BBB’ from Fitch Ratings, ‘Baa2’ from Moody’s Ratings, and ‘BBB+’ from Standard and Poor’s (S and P) Global Ratings.
R and I, the largest credit rating agency in Japan, on Wednesday upgraded the Philippines to A- with a stable outlook, citing the country’s macroeconomic stability, high economic growth path, and improvement in fiscal balance.
An ‘A-‘ credit rating reflects strong investor confidence in the country’s macroeconomic stability, high economic growth, and improved fisca
l position.
Pangandaman earlier said an ‘A’ credit rating is possible for the Philippines as early as 2025.
Source: Philippines News Agency