The Marcos administration would double its efforts to reach its fiscal goal of achieving an “A” credit rating, Budget Secretary Amenah Pangandaman said on Saturday.
Pangandaman welcomed global credit watcher Moody’s affirmation of the Philippines’ “Baa2” investment-grade credit rating.
“This is a positive development but this makes us only more determined to get an ‘A’ grade,” Pangandaman said in a statement.
“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.”
Pangandaman expressed confidence that the country will soon get an “A” rating after 10 years of being at “Baa2.”
Moody’s on Thursday kept is “Baa2” rating for the Philippines since 2014, citing the country’s economic reforms, fiscal consolidation efforts, and robust macroeconomic fundamentals as key factors.
According to Moody’s report, the passage of reforms over the past several years to liberalize the Philippine economy will support medium-term growth potential by supporting a business-friendly environment and attracting foreign investments.
A “Baa2” rating means the Philippines has moderate credit risk while an “A” rating means obligations are subject to low credit risk.
Moody’s is among the leading global credit rating agencies, publishing investor-oriented credit research, industry studies, and risk analysis.
Apart from Moody’s “Baa2,” the Philippines holds two “A-” ratings from Japan’s Rating and Investment Information, Inc. and Japan Credit Rating Agency, “BBB” from Fitch Ratings, and “BBB+” from Standard & Poor’s Global Ratings.
Senator Sherwin Gatchalian welcomed Moody’s Investors Service’s affirmation of the country’s credit rating amid expectations of stronger growth and better fiscal position.
“This bodes well with our legislative agenda of improving investor confidence and attracting foreign investments critical for the country to underpin sustained economic growth,” Gatchalian said in a statement.
Gatchalian is the main author of the proposed Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE) which is expected to generate more foreign direct investments in support of economic growth.
He said increasing foreign direct investments would lead to job generation, support domestic consumption, and further improve the country’s fiscal position.
With the expected enactment of CREATE MORE and other measures supportive of economic development, Gatchalian expressed optimism that the country would secure an investment rating upgrade moving forward.
CREATE MORE is a priority measure of the administration of President Ferdinand R. Marcos Jr.
Gatchalian said now the country’s economy has completed recovered from Covid-19 pandemic, “we expect our economy to grow, and we may even have an investment rating upgrade.” (PNA)
