Japanese debt watcher Rating and Investment Information Inc. (R&I) has kept the country’s investment grade credit rating of BBB+ with a “stable” outlook.
The gesture is a vote of confidence on the Philippine economy’s coronavirus disease 2019 (Covid-19) recovery and growth prospects over the medium term.
R&I recognized the role of fiscal and monetary actions in providing a favorable outlook for the Philippines in the post-Covid period.
“The Philippines’ economy suffered a severe contraction due to the Covid-19 pandemic in 2020 but is expected to recover primarily through aggressive public investment, which had driven the economy in the past several years. Fiscal and monetary policies will boost growth for some time,” it said.
BBB+ is a notch away from the minimum rating within the A-territory ratings, while a “stable” outlook indicates absence of factors that may cause the rating to change over the short term.