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Japan Credit Rating Agency (JCR) on 11 June 2020 upgraded the Philippines’ credit rating by a notch from BBB+ to A-, citing the country’s resilience amid a pandemic that has slowed down growth, impaired fiscal positions and hurt credit ratings of economies across the globe.

 

JCR assigned a “stable” outlook on the new rating, which indicates that the “A-” will be maintained over the near term.

 

“JCR holds that a downturn will be limited given the country’s strengthened economic base, resilient external position, and the government’s economic stimulus package totaling more than 9 percent of GDP. JCR also considers that the fiscal soundness will not be impaired because while the fiscal deficit may widen, the package at this time is justifiable and the government debt will remain comparatively subdued,” JCR said in a report on its latest credit rating action on the Philippines.