PHL Credit Rating has Reached “A” Grade Level

[Ayoshi]

https://business.inquirer.net/299706/japan-agency-gives-ph-a-minus-credit-rating-stable-outlook

Japan agency gives PH ‘A minus’ credit rating, stable outlook
Philippine Daily Inquirer / 05:40 PM June 11, 2020

The Philippines’ credit rating has reached the coveted “A” grade level for the first time after Japan Credit Rating Agency Ltd. (JCR) on Thursday (June 11) announced an upgrade in the country’s sovereign rating to “A-“ with a “stable” outlook.

The new credit rating was one notch higher than “BBB+” previously, while the outlook meant JCR will likely keep the rating in the near term.

While JCR—Japan’s top debt watcher—may be smaller than the top three credit rating agencies Fitch Ratings, Moody’s Investors Service, and S&P Global Ratings, its upgrade came at a time when the Philippines was in a recession as a result of economy-killing measures needed to stop the transmission of coronavirus.

“The ratings mainly reflect the country’s high and sustainable economic growth performance underpinned by solid domestic demand,” JCR said.

It also showed Philippine “resilience to external shocks supported by an external debt kept low relative to GDP [gross domestic product] and the accumulation of foreign exchange reserves, the government’s solid fiscal position, and a highly sound banking sector,” the rating agency said.

Currently, Philippine economic growth is “under downward pressure on the back of the impact of temporary reduction of economic activity due to the implementation of quarantine measures to contain the spread of COVID-19,” JCR said.