R&I maintains stable outlook on PH debt

Japan-based debt watcher Rating and Investment Information Inc. (R&I) has downplayed the Philippines’ debt concerns, affirming the country’s high investmentgrade ‘A-’ credit rating with a stable outlook.

- By DERCO ROSAL

With the government’s debt level seen to “start falling in a year or two,” R&I said in an Aug. 20 statement that the government’s budget position has already improved compared to the size of the Philippine economy. Last year, the government's outstanding debt stood at 60.7 percent of gross domestic product (GDP).

Further, “the levels of current account deficit and external debts are manageable, hence there is limited concern on the external front.”

Looking ahead, R&I expects the country’s fiscal deficit to narrow continuously, in line with the Marcos Jr. administration’s program.