The economic team welcomed Moody’s recent affirmation of the Philippines’ “Baa2” rating with stable outlook, while expressing determination for an “A” rating.
“This is a positive development but this makes us only more determined to get an “A” grade,” budget secretary Amenah Pangandaman said over the weekend.
Nevertheless, Pangandaman is confident that the Philippines will soon get its first “A” rating after 10 years of being at “Baa2.”
“I am confident that as long as we stay on track with our Agenda for Prosperity, with our whole-of-government approach, we will achieve an “A” rating with Moody’s under this administration,” the budget secretary added, noting that the rating of “Baa2” has been maintained by the country since 2014.
A “Baa2” rating means the Philippines has moderate credit risk while an “A” rating means obligations are subject to low credit risk.
Earlier, finance secretary Ralph Recto said the Moody’s affirmation is another victory for Filipinos as this means greater access to more affordable financing to support projects.
“These will create more quality jobs, increase incomes and reduce poverty incidence in the country. With our growth-enhancing fiscal consolidation plan in place, we ensure that we have adequate fiscal space to invest on infrastructure, education, human capital development and social protection programs, which have the high multiplier effects on the economy,” the finance chief said.
“We also put greater emphasis on creating a better enabling environment for stronger private sector collaboration so we can bring in more investments and technology, create high-quality jobs and spur industry development. And with this credit rating affirmation, we can attract more of these high-impact investments into the country,” he added.
With the latest affirmation, the Philippines has successfully maintained its high investment-grade status across all major regional and international debt rating agencies, with two coveted A- ratings from Japanese rating agencies.
