Japan’s R&I maintains Philippines credit rating
Japan-based Rating and Investment Information Inc. (R&I) has affirmed the Philippines’ A- credit rating with a stable outlook, but warned that economic growth could weaken further this year as delays in infrastructure spending and elevated energy prices weigh on domestic activity.
Japan-based Rating and Investment Information Inc. (R&I) has affirmed the Philippines' A- credit rating with a stable outlook, but cautioned that economic growth could slow further this year due to delays in infrastructure spending and higher energy prices. The agency maintained the Philippines' foreign currency issuer rating at A- and its foreign currency short-term debt rating at a-1.
R&I cited the economy's diversified industrial base, improving fiscal position, manageable external debt, and stable banking system as factors supporting the credit rating. Despite the economic slowdown, R&I expects growth to recover to the five-percent range by 2027 as government budget execution normalizes. The Philippines' external resilience is attributed to stable remittance inflows and a relatively low net external debt position.
The government is expected to improve its fiscal position gradually while pursuing consolidation and maintaining spending on infrastructure and social services. Both the Department of Finance and the Bangko Sentral ng Pilipinas welcomed R&I's affirmation, acknowledging the country's sound macroeconomic fundamentals and supporting confidence, access to financing, and quality investments.
Written by urgent.news from Philippine Star Business's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
