MANILA, Philippines — The government is confident the Philippines will finally secure an “A” rating within this administration as it moves to further improve the country’s business environment.
In a statement, Budget Secretary Amenah Pangandaman welcomed debt watcher Moody’s affirmation of its Baa2 rating – a notch above minimum investment grade – and stable outlook for the Philippines.
“This is a positive development but this makes us only more determined to get an ‘A’ grade,” Pangandaman said.
“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,” she said.
For 10 years now, the Philippines has maintained the Baa2 rating.
This means that the Philippines has moderate credit risk while securing an A rating means obligations are subject to low credit risk.
The investment-grade credit rating for the Philippines was maintained amid reform to liberalize the economy, fiscal consolidation efforts and better macroeconomic fundamentals.
Finance Secretary Ralph Recto, for his part, said the government would put more effort into creating a better enabling environment for stronger private sector collaboration.
This would allow the country to bring in more investments and technology, create high-quality jobs and spur industry development.
Further, the debt watcher emphasized that failure to pass the proposed fiscal reform bills would be a downside risk that would derail the fiscal consolidation path.
Recto expressed confidence that most of the priority tax reforms will be passed this year, particularly the bills on value-added tax on non-resident digital service providers and the CREATE Maximize Opportunities for Reinvigorating the Economy (MORE).