Duterte admin joins world's emerging economies with A-level credit rating, stable outlook

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An expert economist and lawmaker said on Thursday that our country got a credit rating upgrade to A level is a great indication that we are now 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 said the credit rating adjustment is 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,” he 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.

The economist-lawmaker relayed that tax reforms and capital adequacy of the financial sector are the basis of the good 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.

With this, Salceda suggests that because of the favorable rating, the country can borrow promising rates and the government can strengthen 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.

“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,” he said


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