The Philippines’ latest credit rating upgrade will help attract more foreign investors in the country, according to the Philippine Economic Zone Authority (PEZA).
PEZA said in a statement the ‘A-‘ credit score, with stable outlook given by Japan’s Rating and Investment Information Inc. (R&I), reflects the Philippines’ status as a top destination for foreign investors, supported by consistently-high economic growth, strong fiscal position and rosy economic outlook.
“Following the strategic investment generation and FDI [foreign direct investment] collaboration plans of our government spearheaded by President Ferdinand Marcos Jr., PEZA remains bullish in enhancing and strengthening our efforts even more to secure partnerships from a large number of investors in different industries for the continuous boost in the Philippines’ economic growth and progress,” PEZA director-general Tereso Panga said.
Data compiled by the Philippine Statistics Authority show that the combined investment pledges processed by the government’s investment promotion agencies climbed by 28 percent in the first six months of 2024 to P1.024 trillion from P797.70 billion a year ago.
The PSA said investment commitments amounted to P309 billion in the first quarter and P717 billion in the second quarter of 2024.
Tokyo-based R&I upgraded the country’s credit rating from ‘BBB+’ with a positive outlook to ‘A-‘ with stable outlook, saying the country demonstrated strong gross domestic product growth in Southeast Asia.
This is now the country’s second ‘A’- rating from Japanese debt watchers. The Philippines received ‘A-‘ score from Japan Credit Rating Agency (JCR) in 2020.
The country successfully maintained its high investment-grade status across all major regional and international debt rating agencies.
Finance Secretary Ralph Recto said the credit rating upgrade would translate into cheaper borrowing costs and stronger investor confidence.
“This is a milestone achievement. This is the first credit rating upgrade under the administration of President Ferdinand Marcos Jr. which affirms the big confidence of investors and creditors in his management of the economy,” Recto said in a statement.
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