Japan-based Rating and Investment Information, Inc. (R&I) upgraded the Philippine sovereign credit rating to ‘A-’ with a stable outlook, reflecting high economic growth and improved fiscal position.
This brought the government its second A credit rating. In 2020, Japan Credit Rating Agency likewise gave the sovereign a credit rating of A-.
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This latest upgrade represents an improvement of one notch from the R&I’s earlier rating of BBB+ on the Philippine government.
“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 … ”