PEZA celebrates PH credit rating upgrade to A- by R&I

The Philippine Economic Zone Authority (PEZA) has expressed enthusiasm over the recent credit rating upgrade of the Philippines to A- with a stable outlook by Japan’s Rating and Investment Information, Inc. (R&I). This upgrade reflects the country's strong economic performance, robust fiscal position, and optimistic future prospects, reinforcing its appeal as a prime destination for foreign direct investments (FDIs).

Director General Tereso O. Panga praised the upgrade, attributing it to the strategic investment and FDI plans implemented under President Ferdinand R. Marcos Jr.’s administration. “This upgrade is a testament to our commitment to fostering a favorable investment climate,” Panga remarked. He highlighted PEZA’s ongoing efforts to attract diverse investors and enhance economic growth through improved partnerships across various industries.

The recent rating by R&I adds to the Philippines' impressive track record of maintaining high investment-grade status, with the first A- rating awarded by Japan Credit Rating Agency (JCR) in 2020. The country has consistently achieved favorable ratings from major regional and international debt rating agencies.

R&I’s assessment notes that the Philippines is expected to experience stable economic growth, supported by active investments from both public and private sectors. The report highlights the country's advancements in sectors such as business process outsourcing (BPO) and manufacturing, particularly semiconductor industries, which are crucial to the nation's economic expansion. The government’s focus on infrastructure development and investment expansion, including public-private partnerships (PPP), is seen as instrumental in achieving sustained economic progress.

The rating upgrade also reflects improvements in fiscal balance and manageable levels of external debt, with expectations for the fiscal deficit to decline and government debt to start decreasing in the near future. The Philippine government’s budget for 2024 aims to support economic growth while enhancing social welfare and infrastructure projects.

PEZA's proactive role in supporting the country’s economic objectives is evident through its commitment to creating a conducive environment for investors. The agency’s efforts align with the broader goal of driving the nation’s economic growth and securing its position as a leading investment hub in Southeast Asia.