Gatchalian welcomes Moody's affirmation of PH investment grade of Baa2 rating
August 26, 2024
Gatchalian welcomes Moody's affirmation of PH investment grade of Baa2 rating
Senator Win Gatchalian welcomed Moody's Investors Service's affirmation of the country's sovereign credit rating of investment grade Baa2 amid expectations of stronger growth and better fiscal position.
The Baa2 rating is a notch higher than the minimum investment grade of Baa3. The credit rating agency also affirmed its stable outlook for the country.
"This bodes well with our legislative agenda of improving investor confidence and attracting foreign investments critical for the country to underpin sustained economic growth," said Gatchalian, chair of the Senate Committee on Ways and Means.
The main author of the proposed Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE), Gatchalian is advocating for its immediate passage. The proposed measure is expected to generate more foreign direct investments in support of economic growth.
He emphasized that increasing foreign direct investments would lead to job generation, support domestic consumption, and further improve the country's fiscal position.
With the expected enactment of CREATE MORE and other measures supportive of economic development, Gatchalian expressed optimism that the country would secure an investment rating upgrade moving forward. CREATE MORE is a priority measure of the Marcos administration.
"Ngayong tuluyan na tayong nakabangon sa dagok sa ekonomiya na dulot ng pandemya, inaasahan nating tuloy-tuloy na ang paglago ng ating ekonomiya at maaari pa tayong magkaroon ng investment rating upgrade," he added.
Moody's attributed its affirmation of the country's investment grade rating to several factors, including the country's reforms to liberalize the economy, fiscal consolidation efforts, and robust macroeconomic fundamentals.
Meanwhile, the Japan-based Rating and Investment Information, Inc. (R&I) recently upgraded the Philippine sovereign credit rating to 'A-' with a stable outlook.
Gatchalian pinuri ang Moody's sa magandang investment grade rating na binigay sa Pilipinas
Malugod na tinanggap ni Senador Win Gatchalian ang investment grade Baa2 credit rating ng Moody's Investors Service sa bansa sa gitna ng mga inaasahang mas malakas na paglago ng ekonomiya at mas matatag na fiscal position.
Ang rating na Baa2 ay mas mataas kaysa sa minimum investment grade na Baa3. Nananatili ring stable ang outlook para sa Pilipinas ng naturang credit rating agency.
Mahalaga ang pagbibigay ng mataas na marka ng credit rating agency sa isang bansa dahil ito ay nagpapakita ng tiwala ng mga financial institutions at investors sa kakayahan nitong bayaran ang mga utang, ayon sa senador. Dagdag niya, ito ay nagpapahiwatig na mababa ang panganib na hindi makabayad ang bansa ng utang, kaya't mas maraming mamumuhunan ang handang magpahiram ng pondo o mamuhunan dito.
Bilang pangunahing may-akda ng panukalang Corporate Recovery and Tax Incentives for Enterprises to Maximize Opportunities for Reinvigorating the Economy (CREATE MORE), isinusulong ni Gatchalian ang agarang pagpasa nito. Inaasahan kasing mas maraming foreign direct investment ang susuporta sa paglago ng ekonomiya.
Binigyang-diin ng mambabatas na ang pagtaas ng foreign direct investment ay magdudulot ng paglikha ng trabaho, susuporta sa domestic consumption, at higit pang magpapabuti sa posisyon sa pananalapi ng bansa.
Sa inaasahang pagsasabatas ng CREATE MORE at iba pang mga hakbang na sumusuporta sa pag-unlad ng ekonomiya, umaasa si Gatchalian na makakamit ng bansa ang isa pang pagtaas sa investment rating nito. Ang CREATE MORE ay isang priority measure ng kasalukuyang administrasyon.
Samantala, kamakailan lang din ay itinaas ng Japan-based Rating and Investment Information, Inc. (R&I) ang Philippine sovereign credit rating ng Pilipinas sa 'A-' na may kasamang stable outlook.
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