The Japan Credit Rating Agency affirmed the Philippines’ “A” sovereign rating with a stable outlook, citing the country’s resilience to external headwinds and manageable external debt.
“The ratings mainly reflect the country’s high and sustainable economic growth performance underpinned by solid domestic demand, its resilience to external shocks supported by an external debt kept low relative to GDP and accumulation of foreign exchange reserves, the government’s solid fiscal position, and a sound banking sector,” Bangko Sentral ng Pilipinas Governor Benjamin Diokno said in a statement Monday.
JCR said it does not consider the fiscal soundness would be impaired because while the fiscal deficit had widened, “the support package at this time was backed by appropriate fiscal policies and the government debt will remain comparatively subdued.”
Finance Secretary Carlos Dominguez III said JCR’s move recognized the government’s scaled-up efforts to put the economy back to its high-growth path.
“Such recovery programs include the faster COVID-19 vaccination deployment; accelerated infrastructure development; and continued push in the Congress for further reforms to supercharge the economy and modernize taxation,” Dominguez said.