Japan’s official debt watcher recently announced it would maintain its investment-grade rating of the Philippines, according to the Investors Relations Office of the Bangko Sentral ng Pilipinas (BSP).
The Japan Credit Rating Agency (JCRA) had made the decision on May 30 to keep the Philippines at the minimum investment grade rating of BBB, but only made the announcement public on Thursday, June 12.
JRCA had previously lifted its sovereign rating for the Philippines from BBB- to BBB with an outlook of “stable” in May, 2013.
In affirming its decision to maintain the rating, the agency noted the country’s resilience to external shocks, robust domestic demand underpinned by remittances, and progress on improvement of fiscal soundness. However, JCR noted that it will be imperative for the government to further strengthen its tax base in order to ensure infrastructure development without undermining the momentum for improvement of its fiscal position.