{"id":258081,"date":"2020-06-15T06:47:32","date_gmt":"2020-06-15T10:47:32","guid":{"rendered":"https:\/\/canadianinquirer.net\/v1\/?p=258081"},"modified":"2020-06-15T06:47:32","modified_gmt":"2020-06-15T10:47:32","slug":"a-minus-credit-rating-affirmation-of-phs-economic-strength","status":"publish","type":"post","link":"https:\/\/canadianinquirer.net\/v1\/2020\/06\/15\/a-minus-credit-rating-affirmation-of-phs-economic-strength\/","title":{"rendered":"\u2018A minus\u2019 credit rating affirmation of PH\u2019s economic strength"},"content":{"rendered":"
\"\"<\/a>
FILE: Presidential Spokesperson Harry Roque during a press briefing in Malaca\u00f1ang on July 19, 2018 TOTO LOZANO\/PRESIDENTIAL PHOTO<\/figcaption><\/figure>\n

MANILA<\/strong>\u00a0\u2013 Malaca\u00f1ang on Monday welcomed Japan Credit Rating Agency Ltd.\u2019s (JCR) decision to upgrade its rating on the Philippines from BBB+ to A- with \u201cstable\u201d outlook amid fears of global economic downturn due to the coronavirus disease 2019 (Covid-19) pandemic.<\/p>\n

\u201cThis recognition by Japan\u2019s leading credit agency is an affirmation of the international community\u2019s faith in our economic strength and resilience amid the worst global downturn in nearly a century,\u201d Presidential Spokesperson Harry Roque said in a virtual presser.<\/p>\n

From an expected contraction this year, JCR forecasts growth to recover and rise to between 6 to 7 percent in the medium-term.<\/p>\n

The new credit rating, Roque said, would boost the country\u2019s ability to get loans with low interest rate to finance the government\u2019s response against the impact of coronavirus.<\/p>\n

\u201cDahil nga mabuti po ang ating<\/em>\u00a0credit rating,\u00a0ibig sabihin mas mababa po ang<\/em>\u00a0interest\u00a0na mauutang natin at yun uutangin natin ay magagamit natin hindi lang para sa ayuda kung hindi para sa ating<\/em>\u00a0response\u00a0sa<\/em>\u00a0Covid-19 (Because we have good credit rating, it means the loans that we will get have low interest and the money we will borrow will be used not only for assistance but for our response against Covid-19),\u201d Roque said.<\/p>\n

Roque attributed the JCR\u2019s recognition to the Philippines\u2019 credit standing to President Rodrigo Duterte\u2019s economic team headed by Finance Secretary Carlos \u2018Sonny\u2019 Dominguez III.<\/p>\n

\u201cWe thank our economic team,\u00a0lalo na<\/em>\u00a0(specially) Secretary Dominguez for their initiatives, including reforms that help weather the pandemic and steer the economy towards the new normal,\u201d Roque said.<\/p>\n

Dominguez said this achievement was a result of a team effort.<\/p>\n

\u201cIt\u2019s the result of the President\u2019s strong leadership and the teamwork of the Cabinet, BSP (Bangko Sentral ng Pilipinas), and the legislators,\u201d he said.<\/p>\n

In a statement, the BSP said the Japan-based debt rater noted the improved economic fundamentals of the Philippines that makes it more resilient to the pandemic, as well as the government\u2019s bid to implement reforms in the tax system such as through the push for the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE).<\/p>\n

\u201cJCR holds that a downturn will be limited given the country\u2019s strengthened economic base, resilient external position, and the government\u2019s economic stimulus package totaling more than 9 percent of GDP (gross domestic product). JCR also considers that the fiscal soundness will not be impaired because while the fiscal deficit may widen, the package at this time is justifiable and the government debt will remain comparatively subdued,\u201d the BSP said, quoting the JCRA statement.<\/p>\n

The credit rater also cited as a plus to the country\u2019s rating the strength of the domestic banking system, which recorded a capital adequacy ratio (CAR), a gauge of financial health, of 15 percent.<\/p>\n

The country\u2019s external debt balance, which currently stands at 22.2 percent of domestic output and the strong gross international reserves (GIR), which posted a record-high of USD90.94 billion as of end-April 2020, were also recognized.<\/p>\n

\u201cJCR holds that the country will show its high resilience even when global risk-off moves would be triggered again by a second wave of Covid-19 pandemic,\u201d the debt rater said.<\/p>\n","protected":false},"excerpt":{"rendered":"

MANILA\u00a0\u2013 Malaca\u00f1ang on Monday welcomed Japan Credit Rating Agency Ltd.\u2019s (JCR) decision to upgrade its rating on the Philippines from …<\/p>\n","protected":false},"author":33,"featured_media":173623,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1145,16,95],"tags":[],"class_list":["post-258081","post","type-post","status-publish","format-standard","has-post-thumbnail","category-headline","category-news","category-news-ph","mauthors-jelly-musico","mauthors-philippine-news-agency"],"_links":{"self":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/258081","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/users\/33"}],"replies":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/comments?post=258081"}],"version-history":[{"count":1,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/258081\/revisions"}],"predecessor-version":[{"id":258082,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/posts\/258081\/revisions\/258082"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media\/173623"}],"wp:attachment":[{"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/media?parent=258081"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/categories?post=258081"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadianinquirer.net\/v1\/wp-json\/wp\/v2\/tags?post=258081"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}