Japanese JCR keeps ‘BBB+’ PH rating

Japan Credit Rating Agency (JCR) is maintaining the Philippines’ credit rating of “BBB+” which is the country’s highest credit score so far.

The JCR rating is just one upgrade away from an “A” category.

Bangko Sentral ng Pilipinas (BSP) Officer-in-charge Deputy Governor Diwa Guinigundo yesterday said the Philippines has consistently reported one of the fastest growth rates in the region and the world, and that the country “has proven that boom-and-bust cycles are a thing of the past.”

“We credit our economic gains to a solid foundation that consists of decades of structural reforms, including pursuit of sound fundamentals,” said Guinigundo. “These fundamentals – including benign inflation, healthy external payments position, and stable banking system – will continue to help the Philippines build on its gains to become a more inclusive economy.”

In its review, the Japanese credit agency said they believe domestic economic fundamentals will remain strong under the Duterte administration.

JCR views the country’s resilience to external shocks and “relatively sound fiscal position and relatively sound economic growth potential” enough reasons to keep the credit rating score.

The debt watcher also noted that the change in political leadership and “aims to build on its past economic gains, such as by spending even more on infrastructure and pursuing additional reforms to generate investments” are also credit positive.

The rating is assigned a “stable” outlook, which indicates absence of factors at the moment that can drag (or lift) the country’s creditworthiness in a span of at least 12 to 18 months. (LCC)