Japan credit watcher upgrades Phl rating

Tokyo-based debt watcher Rating and Investment Information Inc. (R&I) has upgraded its investment grade rating for the Philippines to A- from BBB+ with a stable outlook on the back of the country's robust economic growth, improving fiscal balance, rising investments, and a stable banking sector.

- KEISHA TA-ASAN

The Japanese credit rating agency said the Philippines would likely see a stable growth and sustained improvement in national income amid active investments, development of domestic business sectors, and favorable demographics.

“The fiscal balance as a share of gross domestic product (GDP), which had deteriorated during the COVID-19 pandemic, has improved and the government debt ratio will likely start falling in a year or two,” R&I said.

The country’s A- credit rating, which is three notches above minimum investment grade, was also due to expectations of a manageable current account deficit and external debt in the coming year.

“Based on macroeconomic stability and high economic growth path as well as expected continuous improvement in fiscal balance, R&I has upgraded the Foreign Currency Issuer Rating to A-,” it said.