PH confident of 'A' credit rating

The Marcos Jr. administration’s economic team is optimistic that the Philippines will secure an “A” sovereign credit rating by 2028, citing rapid and promising gains from the government’s growth-supportive reforms.

- By DERCO ROSAL

Based on the midterm update of the country’s Medium-Term Fiscal Framework (MTFF) 2022-2030, published on Oct. 9, the Cabinet-level Development Budget Coordination Committee (DBCC) said the outlook remains positive, noting that the Philippines is “on track to achieve a single-A credit rating.”

This comes after Finance Secretary Ralph G. Recto revealed to reporters last Tuesday, Oct. 14, that debt watcher S&P Global Ratings scrapped its planned credit rating upgrade for the Philippines this year due to the eruption of cases involving alleged corruption in the government’s flood control budget.

S&P Global has held back on upgrading the Philippines’ BBB+ credit rating to A-, as the flood control fiasco raised a red flag for credit rating agencies.

“The country is in a strong position due to the fast implementation of ongoing structural reforms, sustained economic growth, and efforts to open key sectors to greater foreign ownership and investments,” the DBCC report read.