Metro Manila (CNN Philippines) — Another credit ratings agency has affirmed the Philippine economy’s stability.
On Monday (July 6), the Japan Credit Ratings Agency (JCR) announced that it has upgraded the country’s Foreign Currency Long-term Issuer Rating and its Local Currency Long-term Issuer Rating to BBB+ from BBB, equivalent to a “Stable” grade.
In a statement, the JCR said that the upgrade reflects four different variables:
The government’s improving fiscal position
The government’s sound external position
Generally stable political and social situations
Increased prospects for sustained economic growth fueled by remittances and capital investments
“JCR is of the view that the Philippine economy will, by and large, sustain an annual growth of around 6% in the years to come driven by strong domestic demand.”
JCR also noted the improved non-performing loan ratio (1.8%) of the country’s banking sector in 2014, and the same year’s lower debt-to-GDP ratio of 45.4% compared to 2013’s 49.2%.
The agency also pointed out how the country’s current account balance has been in surplus since 2003.
“The foreign exchange reserves have been steadily increasing amid continued current account surpluses, making contributions to enhancing the stability of the country’s external balance.”
