With the promising economic growth of the Philippines, Rating and Investment Information Inc. (R&I), Japan-based credit rating firm, upgraded Philippines’ credit rating to BBB+.
Based on the report from Business World, the positive growth performance, healthy fiscal conditions and its infrastructure development drive affected Philippines’ credit rating.
“R&I also assigned a ‘stable’ outlook to its rating on the Philippines, signifying that the grade is unlikely to be changed within the short term,” report mentioned.
Moreover, R&I considered the improved socioeconomic climate of Philippines.
“R&I stated that the country’s economy was said to be driven by the current administrations’s aggressive public investment, its ‘commitment to fiscal discipline, its confidence of achieving the downward trend of the debt ratio even as public investments rise’,” Business World reported.
The decreasing unemployment rate and poverty rate, together with the increasing national income per capita have significantly influenced R&I’s credit ranking to our country.
The gross domestic product of the Philippines grew by 5.9 percent (See full report here: GDP in the Philippines reached 5.9% in 2019).
“Favorable assessment from Japanese credit rating agencies like R&I has become more important for the Philippines in recent years, given the government’s successive issuances of Samurai bonds in the Japanese market as part of the strategy to diversify sources of financing,” IRO said.