PH joins emerging economies with A-level credit rating

House ways and means committee chair Joey Sarte Salceda made the remark after Japan Credit Rating Agency Ltd. (JCR) upgraded the country’s sovereign rating from BBB+ to A- with a “stable” outlook. (File Photo: Joey Sarte Salceda/Facebook)

MANILA – An economist-lawmaker on Thursday said the credit rating upgrade to A level has put the Philippines among the list of strongest emerging economies in the world.

House ways and means committee chair Joey Sarte Salceda made the remark after Japan Credit Rating Agency Ltd. (JCR) upgraded the country’s sovereign rating from BBB+ to A- with a “stable” outlook.

Salceda described the credit rating adjustment as an unprecedented achievement in the country’s fiscal position, and an affirmation of the country’s commitment to fiscal reform.

“This is an unprecedented achievement and it is a validation of the hard work we have been doing over recent years,” Salceda said.

“In previous crises, we had to enact painful reforms to make up for the sins of the past… that’s why I am relieved that we are facing the current crisis from a position of great strength.” Salceda added.

Salceda noted that the agency has cited the tax reforms and the capital adequacy of the financial sector as bases for the favorable assessment.

“The Duterte administration’s centerpiece infrastructure development policy and Comprehensive Tax Reform Program (CTRP) aimed to secure part of the development costs have been steadily progressing since JCR’s last rating review,” the agency’s research note added.

Salceda said the rating suggests that the country can borrow at very favorable rates, and the government can beef up infrastructure spending more sustainably.

“I take this as a sign both to continue the pace of reforms that we have undertaken and to push for reforms that will speed up infrastructure completion to bolster GDP (gross domestic product) growth,” Salceda added.

Salceda highlighted that some of his proposed infrastructure spending reforms include emergency powers for “Build, Build, Build” projects, an enhanced “Build, Build, Build” plan over the next three years, and land valuation reform to speed up right-of-way resolution.

“I will continue to work with the economic managers so that we get the necessary policies to make implementing our growth and recovery strategies easier,” Salceda said.