Citing robust growth from economic reforms and higher foreign direct investments, Malaysian debt watcher RAM Rating Services Berhad has upgraded its credit rating for the Philippines.
In a statement, the government’s Investor Relations Office (IRO) said RAM last Wednesday raised the Philippines’ global credit rating to “gBBB2(pi)”—equivalent to the “BBB” score by major debt watchers or one notch higher than minimum investment grade—“on the back of the country’s sustained growth momentum, a persistent uptrend in foreign direct investment inflows and continuous progress in the government’s economic reform program.”
The Philippines’ regional and Malaysia national ratings were also upgraded to Aa3 due to the country’s “superior capacity to meet its financial obligations.”
The regional rating compares the Philippines to its Asean neighbors, while the Malaysia national rating “reflects perceived credit-worthiness before Malaysian investors,” the IRO explained.
The Philippines also obtained a “stable” outlook, which meant the ratings would likely not change in the near term.
RAM attributed this to the Philippines’ “strong external position and economic resilience amid ongoing reforms,” the IRO said.
RAM also reportedly said that while gross domestic product growth slowed down to a three-year low of 6 percent in the second quarter, the Philippines remained among the fastest-growing Asian economies. —BEN O. DE VERA