Japan debt watcher affirms Philippines' 'A-' rating

THE JAPAN Credit Rating Agency (JCR) has again maintained the Philippines' “A-” rating with a “stable” outlook, citing the country's resilient economic growth and continued fiscal consolidation.

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In a news release on Thursday, JCR affirmed the country’s foreign currency and local currency long-term issuer rating at “A-” and kept its “stable” outlook.

“The ratings mainly reflect Philippines’ high and sustained economic growth supported by solid domestic demand, low-level external debt and resilience to external shocks supported by accumulated foreign exchange reserves,” it said.

An “A-” rating indicates a high level of certainty to honor financial obligations, while a “stable” outlook means the rating is unlikely to change in the foreseeable future.

“However, reducing income disparity through rural development and infrastructure development remain important tasks to be addressed,” JCR said.

The Japan credit rater noted the country’s “steady progress” on its fiscal consolidation, infrastructure development, and poverty alleviation.

“JCR expects that economic growth and fiscal improvement through the government's efforts will enhance the country’s creditworthiness.”