MANILA – President Rodrigo R. Duterte is optimistic the domestic economy will be able to surpass the challenges posed by the coronavirus disease 2019 (Covid-19) pandemic.
In his fifth State-of-the-Nation Address (SONA) on Monday, the President said the government’s “fiscal position is strong, our economic fiscal management prudent, and our banking system robust”.
“We are in a better position to weather the crisis caused by Covid-19 global pandemic,” he said.
The government’s strong fiscal position allowed it to have savings, which were tapped for its Covid-19 response.
Having strong macroeconomic fundamentals are among the reasons behind the country’s achievements on its credit rating.
President Duterte said that Japan Credit Rating Agency (JCRA) upgraded its investment grade ratings on the Philippines from BBB+ to A-, with stable outlook, while Moody’s Investors Service affirmed its Baa2 ratings, with stable outlook.
JCRA’s decision was made last June 11 while Moody’s last July 16.
Aside from these two ratings actions, the country also received affirmation of its credit rating from Fitch Ratings at BBB despite the change in outlook from positive to stable last May 7.
S&P Global Ratings also affirmed its BBB+ rating with a stable outlook on the country last May 30.
“We received a BBB+ credit rating despite ASEAN credit rating downgrades and negative revisions worldwide,” the Chief Executive added. (PNA) #DuterteSONA2020 #WeRiseAsOne