By DERCO ROSAL
The Philippines is poised for potential credit rating upgrade given the country’s resilient economy and positive growth outlook, global banking giant Citi executives stated.
“Citi executives expressed confidence that the country is well-positioned for a credit rating upgrade given the Philippines' robust macroeconomic fundamentals and positive outlook,” the Department of Finance (DOF) said in a statement.
Prior to the bank executives comments, Finance Secretary Ralph G. Recto, on the sidelines of the 2024 Annual Meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG), emphasized Citi's ongoing support for the Philippines' goal of achieving an "A" credit rating and discussed potential investment partnerships.
At present, the Philippines holds “high” credit ratings from Fitch (BBB), Moody’s (BAA2), and S&P (BBB+), which reflect “strong confidence in the country’s sound economic and fiscal policies.”
The DOF stated that a high credit rating is “a major win for all” as it grants the Philippines greater access to affordable financing for infrastructure, social services, healthcare, and education.
“It likewise attracts more foreign direct investments into the country, which will create better employment opportunities for Filipinos, increase their incomes, and help reduce the poverty rate,” the DOF added.
During the Oct. 24 roundtable dialogue, members of the United States ASEAN Business Council (US ABC) shared their positive outlook on investment opportunities in the Philippines.
“Members expressed bullishness over the exciting investment prospects in the Philippines and affirmed that the country is now more prominently on the radar screen of US companies,” the DOF reported.
Recto tackled the country’s major investor concerns and put emphasis on major sectors, particularly defense and security, in which the U.S. could invest.
Recto also noted that the Trilateral Partnership involving the US, the Philippines, and Japan enhances the country’s status as a key hub for American businesses, especially in high-value sectors like “semiconductors, renewable energy, power grids, telecommunications, data centers, and cybersecurity.