The Philippines recently received its third credit rating upgrade, this time from Japan Credit Rating Agency (JCRA). The Philippines received its first credit rating upgrade from Fitch Ratings last March, which was followed by Standard & Poor’s (S&P) a week ago.
According to JCRA, the improved political environment of the Philippines, continuous economic development, and financial growth reinforced by remittances from overseas Filipino workers (OFWs) are the key factors for the credit rating upgrade.
Moreover, Amando M. Tetangco Jr., Governor at the Bangko Sentral ng Pilipinas (BSP) said JCRA is the first international rating institution that gave a BBB rating to the country’s local currency long-term senior debts and foreign currency, the subsequent step to giving an investment grade advancement. Tetangco cited JCRA’s move of revising the projections of the ratings from positive to stable as another achievement of the Philippines.
However, Tetangco disclosed that the country should be able to sustain all these improvements to maximize its economic growth potential.