Duterte says Philippines maintains BBB+ credit rating despite COVID-19 impact

President Rodrigo Duterte underscored late Monday that the Philippines has maintained its BBB+ credit rating despite grim outlook as the economy continues to reel from the impact of the COVID-19 pandemic.

“I am happy to report that the Philippines has maintained its credit rating of BBB+ hanggang ngayon,” he said in a televised address to the nation.

“Yung iba, nagbagsakan na, tayo hindi, bakit?  Kasi naniwala kayo, …nag-lockdown tayo, tayo sunod agad sa batas, tapos ang trabhante ng gobyerno for the time na wala pang lockdown, mahusay.  They are really working,” Duterte added.

In February this year, Fitch Ratings adjusted upward the Philippines' "BBB" outlook to "positive,” citing its sound macroeconomic environment and fiscal reforms.

This came a week after Japan-based Rating and Investments Information Inc. (R&I) also upgraded the country’s rating from “BBB” to “BBB+,” according to an earlier statement by the Bangko Sentral ng Pilipinas (BSP).

“R&I joins Standard & Poor’s (S&P) Global and Japan Credit Rating Agency (JCR) in assigning to the Philippines a “BBB+” rating, just a notch away from the sterling “A” scale and a step above Fitch’s,” BSP said.

BSP quoted Fitch as saying that “The outlook revision reflects Fitch's expectations of continued adherence to a sound macroeconomic policy framework that will support high growth rates with moderate inflation, progress on fiscal reforms that should keep government debt within manageable levels and continued resilience in its external finances.”

In a separate statement last week, Department of Finance Secretary Carlos Dominguez III said the country’s credit rating of BBB Plus was the “highest we have ever achieved.”

The fight against COVID-19 and the need to provide assistance to millions of Filipinos impacted by the temporary halt in economic activities have proven to be a fiscal challenge to government resources.

The DOF earlier said it is looking to raise $23 billion or around P1.17 trillion to fuel the country's fight against the spread of the coronavirus.  The amount accounts for around 5 percent to 6 percent of GDP.

If the amount would not be sufficient, the DOF said government might borrow for additional funds.

Meanwhile, Duterte praised anew the military and police, who are among the frontliners in helping implement the lockdown in many parts of the country.

“Naawa ako sa kanila, kulang sa tulog, hindi sapat ang sahod, pero this is how it is, pumasok tayo dyan, magtiis tayo,” he said.

“But what is really very telling is we are serving our fellow human beings,” he added. —LDF, GMA News