"A" Credit Rating For PH Possible --- Diokno

Finance Secretary Benjamin E. Diokno said that earlier this month it is “possible” for the Philippines to secure the coveted “A” rating from credit watchers by 2028.

Photo Insert: Diokno: We’re getting there… For example, we have an ‘A’ rating from the Japan Credit Rating Agency (JCR)… If you look at the rest of the world, around a third were downgraded. But we are doing okay. (We are still) on the road to ‘A.'

“We’re getting there… For example, we have an ‘A’ rating from the Japan Credit Rating Agency (JCR)… If you look at the rest of the world, around a third were downgraded. But we are doing okay. (We are still) on the road to ‘A,’” he said during a press chat.

In March, the JCR maintained the country’s credit rating at “A-” with a stable outlook. Meanwhile, Fitch Ratings kept its long-term foreign currency issuer default rating at “BBB” for the Philippines in May, while S&P Global Ratings affirmed its “BBB+” in November last year.

Moody’s Investors Service also kept the Philippines’ “Baa2” credit rating with a stable outlook in September last year. In 2021, China Lianhe Credit Rating Co. maintained its “AAA” credit rating with a stable outlook.

To achieve an A-level investment grade, Mr. Diokno said that the government must continue its fiscal consolidation plans and improve spending on infrastructure.

“(In the previous) years, we only spent 2-3% of gross domestic product (GDP) on infrastructure. Now, we ramped it up to 5-6% of GDP,” he said.

This year, the government plans to spend 5.3% of GDP on infrastructure, equivalent to P1.29 trillion.

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