MANILA — A Japanese agency affirmed the country’s ‘BBB’ rating with a stable outlook, despite noting constraints on the country’s challenging investment environment.
Despite the affirmation, Japan Credit Rating Agency Ltd. said in a statement published by the Philippine Star that the ratings are particularly constrained by the “inadequate infrastructure albeit improving partially such as roads.”
“The country definitely needs to develop infrastructure and improve the investment environment to attain rapid and sustainable economic growth,” JCR said. “JCR will watch how the government will address the challenge and how much progress it will make,” the firm said.
The firm, still expects improvement in the country’s fiscal position through “enhanced tax collection efficiency and rationalization of fiscal incentives.”
It is also looking forward to the country’s accelerating economic growth to reach above six percent this year on strong domestic demand.
The firm also added that the ratings is a reflection of the country’s resilience to several economic factors including “external shocks, robust domestic demand underpinned by OFW (overseas Filipino workers) remittances, and progress on improvement of fiscal soundness.”
With reports from Philippine Star