Japan Credit Rating Agency Improves Philippines to A-

On Thursday, June 11, the Japan Credit Rating Agency (JCRA) upgraded the investment-grade of the Philippines from BBB+ to A-. Amidst the COVID pandemic, the JCRA projects the Philippines to recover 6-7% after the initial market contraction in the medium term.

The Bangko Sentral ng Pilipinas (BSP) stated that key drivers of this investment-grade improvement are improved economic fundamentals that make the Philippine economy pandemic resistant, the government’s bid in tax reform through the Corporate Recovery and Tax Incentives for Enterprises Act (CREATE), and the strength of our domestic banking system, which recorded a capital-adequacy ratio of 15%.