FINANCE Secretary Benjamin Diokno said the Philippines is aiming to get the highest investment grade rating before the end of President Ferdinand Marcos Jr.’s term.
Diokno outlined the government’s “Road to A” program to achieve the government’s goal of getting an “A” rating from international debt watchers such as Fitch Rating, S&P Global and Moody’s Investor Service, among others.
Having an “A” rating gives the country access to loans with better interest rates. It can also make the Philippines more attractive to foreign investors.
Diokno said having an A rating could bring more investments and generate jobs.
“An A rating would affirm the Philippines’ credit-worthiness and would serve as a strong signal to local and international business and financial communities that the country is conducive to long-term investments,” Diokno said.
Marcos, during his visit to the New York Stock Exchange last year, also said the country is aiming to reach the highest investment grade territory.
The Philippines has established an “Inter-Agency Committee on the Road to A” whose three-pronged strategy includes achieving solid economic growth, prudent fiscal management, and strong governance standards and institutions, Diokno said.
Becoming an upper-middle-income country and addressing infrastructure gaps are also among the country’s goals, he added.
“Our focus is on the medium term fiscal framework. They [rating agencies] need more institutional reforms, government reforms and we’re doing it,” he said.
Currently, the Philippines has a BBB+ credit rating from S&P Global which is one notch below the A grade, a BBB rating from Fitch Ratings and a BAA2 from Moody’s Investor Service, among others.
Diokno said the country did not suffer from any credit rating downgrade even during the COVID-19 pandemic. (ABS-CBN News)
