Recto: Fitch's credit rating 'victory for ordinary Filipinos'

Finance Secretary Ralph G. Recto said the recent affirmation of the Philippines’ investment-grade credit rating by Fitch Ratings would attract more foreign investments into the country.

In a statement on Monday, June 10, Recto said he welcomed Fitch’s decision to maintain the country’s “BBB” credit rating—above the minimum investment grade by a notch—with "stable" outlook.

Recto said the credit rating is a victory for ordinary Filipinos, as it is expected to result in greater accessibility to financing for the government’s development programs.

“This affirmation is highly encouraging as it shows a strong vote of confidence in our ability to grow the Philippine economy in a higher path over the medium term,” Recto said.

“As I have said before, any rating affirmation or upgrade is a major win for all Filipinos as this means that the Philippines can have more access to cheaper financing from global capital markets. A better credit rating will help us create more jobs and reduce the poverty rate,” he added. 

The Philippines’ high credit rating sends a signal of confidence to investors and creditors, resulting in lower interest rates and better returns for Philippine bonds, the finance chief said.

He added that it also attracts more foreign investments into the country, which will create better employment opportunities for Filipinos.

Fitch’s recent reaffirmation of the Philippines’ credit rating has allowed the country to maintain its high investment-grade status across all major regional and international debt rating agencies.

In its report dated June 7, 2024, Fitch said the BBB rating and stable outlook reflect the Philippines’ strong medium-term growth.