Manila: The Japan Credit Rating Agency Ltd. (JCR) has affirmed the Philippines' investment-grade credit rating of 'A-' with a 'stable' outlook, emphasizing the country's consistent economic growth.

According to Philippines News Agency, the JCR highlighted the Philippines' high and sustained economic growth, which is bolstered by solid domestic demand, low external debt levels, and resilience to external shocks facilitated by accumulated foreign exchange reserves. An investment-grade rating indicates low credit risk and provides favorable financing terms for crucial public services and infrastructure projects.

The agency projects that the Philippine economy will continue to grow within the upper 5 percent range this year, driven by strong domestic demand despite global uncertainties. The JCR acknowledged several government reforms aimed at boosting growth, such as the "Build Better More" program under the Marcos administration. This initiative focuses on increasing infrastructure spending and enhancing the country's competitiveness through public-private partnerships (PPP) and the CREATE MORE Act, which aims to improve the business environment and clarify tax regulations.

The report also notes a faster-than-expected decline in the country's poverty rate, attributed to rising average hourly wages. Additionally, the Philippines maintains a strong external position with ample foreign exchange reserves, and government efforts toward fiscal consolidation are supported by the Medium-Term Fiscal Framework.

Despite uncertainties stemming from changes in US tariff policies, the JCR assesses the Philippines' foreign exchange liquidity as solid and expects the economy to remain highly resilient to external shocks. The Marcos Jr. administration, which commenced in June 2022, is implementing policies focused on fiscal consolidation, infrastructure development, and poverty alleviation, showing steady progress.

The JCR anticipates that continued economic growth and fiscal improvements will enhance the Philippines' creditworthiness and will closely monitor ongoing developments. Bangko Sentral ng Pilipinas Governor Eli Remolona Jr. welcomed JCR's credit rating affirmation, recognizing its potential to bolster investment from Japan.