Japan Credit Rating Agency Ltd. (JCRA) affirmed its ‘BBB’ rating on the Philippines, maintaining the same investment grade rating as last year. JCRA cited the country’s “resilience to external shocks” and “progress on improvement of fiscal soundness.”
JCRA expects the Philippines’ to grow above six percent due to strong domestic demand, enhanced tax collection and other fiscal improvements. The balance of payments’ current account component continues to be positive from strong business process outsourcing (BPO) revenues, OFW remittances and tourism receipts.
JCRA noted that the ratings could improve next year if the government addresses the Philippines’ challenging investment environment, particularly its inadequate infrastructure development.
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