Japan-based R&I affirms Philippines’ A- rating 

MANILA, Philippines — Japan-based credit watcher Rating and Investment Information Inc. (R&I) has affirmed the Philippines’ investment-grade rating of “A-” with a stable outlook, citing the country’s robust economic base and expectations that growth will recover to around 5 percent from 2027 as budget execution normalizes.

“R&I views the disruption stemming from the series of corruption issues as temporary and believes that the thorough implementation of preventive measures will lead to improved governance through greater transparency in budget execution and infrastructure projects,” the agency said in its latest rating action on Friday.

READ: Japanese debt watcher R&I keeps PH investment grade credit rating

The country’s economic expansion will continue to thrive because population growth, infrastructure investment, and foreign direct investment support it.

Also seen to provide support are services such as tourism and Information Technology and Business Process Management (IT-BPM) and manufacturing, particularly semiconductors.

R&I expects the country to continue narrowing its fiscal deficit. Despite the elevated debt ratio, we can manage it, and we expect it to decline over the medium term.

READ: ‘A’ credit rating dream stalled: S&P outlook on Philippines lowered to ‘stable’ from ‘positive’

“The fiscal balance has improved as a share of gross domestic product (GDP), and the government debt ratio is likely to decline in the medium-term,” R&I said.

“With the current account deficit and external debt remaining at manageable levels, there is limited concern on the external front. In addition, the banking sector maintains stability,” it added. /pai