Credit rating upgrade to boost investments — NEDA

MANILA, Philippines — The National Economic and Development Authority (NEDA) welcomes the recent credit rating upgrade of Tokyo-based Rating and Investment Information Inc. (R&I) for the Philippines, saying it is a recognition of the country’s ability to invest in innovation and education that will enable it to transition to a knowledge-based economy.

R&I has upgraded the country’s credit rating by a notch to “BBB+” from “BBB.”

It also assigned a “stable” outlook to its rating on the Philippines.

“The credit rating upgrade for the Philippines by R&I will enhance the country’s investment climate and creditworthiness. Wider fiscal space enables the country not only to spend more on infrastructure but also invest in ‘suprastructure’ – quality education and science and technology innovation ecosystem required for the Philippines to become a globally competitive knowledge economy.” said Socioeconomic Planning Secretary Ernesto Pernia in a statement issued over the weekend.

The rating upgrade came amid government efforts to attain an “A” credit rating by 2022.

This is the second BBB+ rating for the Philippines after S&P Global Ratings upgraded the country’s credit rating in April last year.

Attaining an “A” rating provides significant benefits such as lower borrowing costs for both the government and private entities.

This, in turn, enables the government to plow back savings from reduced borrowing costs to infrastructure and social services.